General Question

benjaminlevi's avatar

Why should we allow corporations to become "too big to fail"?

Asked by benjaminlevi (2987points) May 30th, 2009

Seems like far too efficient a business model at the expense of public funds.

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3 Answers

marcosthecuban's avatar

very few of them, imo, far fewer. if we as americans can not tolerate the failure of banks or big business, then we end up with the state running our lives and less capitalism, not more.

The_Compassionate_Heretic's avatar

I think this is going to change soon. This question always makes me think of AIG which if they went under would be a disaster for all the people that they insure. There’s gov’ts insured by AIG.

These companies get so big that tv that they’re indispensable to others. Then since they can’t be allowed to fail because of such serious repercussions the companies start doing ethically questionable things with the attitude of “what are you gonna do about it?”
It the flagrant abuse of their position that bugs me most.

Clearly we can’t allow so much power to accrue in one place.

FiRE_MaN's avatar

the US government is suppose to keep businesses from getting to large to fail so things like this dont happen. they failed which in turn means we failed.

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