When Thomas Edison was working on his lightbulb, despite countless failures, when asked about it, he simply replied: “If I find 10,000 ways something won’t work, I haven’t failed. I am not discouraged, because every wrong attempt discarded is another step forward.” (Encyclopedia Britannica)
If only corporations, of the large persuasion, would look back and learn from their mistakes in the past and the mistakes that others in their field; perhaps, corporate bailouts would not be necessary.
On one side of the fence some believe that a bailout is a good thing, because it keeps people employed. The other side may feel that, if the “big wig’s” had of done their job correctly, a bailout would not be needed at all.
The two major bailouts that come to mind are that of the airline industry and the automotive industry. With that in mind, what would have happened if neither received any help from the government (meaning tax money)?
Would people lose their jobs? Most likely yes. Although it would force the people in charge to come up with a way to run their business more successfully. The government shouldn’t have to step in like a kind father and bail their rambunctious child out of jail when they make a mistake.
Perhaps if the airline industry did fail and a bailout was not an option, the industry would have invested a lot more interest in creating a means to make the business profitable without cutting corners. It may be the case that people couldn’t fly for a little while, but, the airline industry would be up all hours of the day trying to find out how to get those plains in the air and start making money again as soon as possible.
In a situation like this, a message would be sent to all business who think they are too big to fall, to take a step back and reinvent itself for the better of its customers and shareholders.
Note: all of the above is based on opinion, not on factual data.