Re:America's bailed-out airlines are not 'playing fair' with...
by orthecreedence on Saturday March 28, 2020 @01:45PM
(#22712827)
> Transitioning a culture from private ownership to public is highly value destroying
You know what else is value-destroying? Giving money to failed companies for free. Everyone's a capitalist until something bad happens, then they go running to Free Money Center to pick up their welfare check.
> And putting electeds in charge of companies goes about as one would expect in terms of venality and competence.
Yes, failing companies are a paragon of competence.
Re:America's bailed-out airlines are not 'playing fair' with...
by JumpCrisscross on Saturday March 28, 2020 @02:30PM
(#22713202)
> You know what else is value-destroying? Giving money to failed companies for free.
We agree on this. I think companies should be allowed to fail. If we can’t afford that, their shareholders (and managements’ parachutes) should be wiped out, and the public should get economic upside. Bailouts should be a painful last resort.
But the public should not get control. Particularly not open-ended control by a board of politicians.
This has succeeded practically zero times in the history of nationalisation. Transitioning a culture from private ownership to public is highly value destroying. And putting electeds in charge of companies goes about as one would expect in terms of venality and competence.
The better strategy is to have a board appointed by elected representatives with a finite term and mandate to return the assets to private ownership.