It's a bad outcome to temporarily sustain zombie businesses even if you stop shareholders from benefitting.
Thanks for the correction on the corporate tax reduction.
Thanks for the correction on the corporate tax reduction.
Purely from the financial side, another way of looking at this is: if bail outs were really net positive then the private sector would handle it. If the government has to handle it, it is a bail out. Governments almost always lose money on bail outs. Sometimes, like the last one, it is falsely claimed that the government made a profit. It probably lost money [1] and we still have 1.9 trillion mortgage backed securities on the fed's books that are unaccounted for in such claims.
I agree that these things are not a 100% handout, but they are most definitely a bail out.
[1] http://gcfp.mit.edu/wp-content/uploads/2019/02/BailoutsV12.p...