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plasmatix | 1 year ago

Why do you think it’s called “The Great Recession”?

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olalonde|1 year ago

Because a business cycle contraction occurred? If GM had been allowed to fail, other companies would have filled the gap in the market, and new businesses would have emerged, most likely generating even greater tax revenue over time. While there may have been some short-term thumb twiddling, the market would have eventually created new jobs elsewhere, jobs that would have been even more productive. There's a great opportunity cost to "saving" millions of unproductive jobs.

cyberax|1 year ago

> Because a business cycle contraction occurred?

Yeah, like in 1929.

> If GM had been allowed to fail, other companies would have filled the gap

Which ones? A failure of GM would have hit Ford as well, because they share a lot of suppliers.