Money to people that need it, the airline industry…

The US airline industry has asked for a $50 billion aid package to help them survive this crisis, which they will likely get. $50 Billion. Why does the industry need this? Also, how does this keep in line with the basic tenants of capitalism laid out by Adam Smith?

Smith believed in the Invisible Hand of capitalism. That is, the market would determine the best case of action through demand. This is contradictory to bailouts and subsidies. If the US airline industry cannot stand on its own, then it simply cannot/should not exist as a group of privately owned companies. This is not to say that they should be federalized, but that might be an option. Large multi-billion dollar corporations have received enough bailouts.

It would appear that more people are concerned about social security checks being used to buy alcohol or smartphones than subsidized corporations giving their executives multi-million dollar bonuses.

Regardless of who gets ‘free money’ there will always be waste. However, there might be a slightly higher net-gain by giving people (poor people that is) money in hand. Bailing out companies is not the answer. It is also important to consider that Jeff Bezos paid NOTHING in federal taxes for the 2018 tax year. Does he really need to be tax free?

About Nicholas Wyant

Information does not want to be free. Fake News does not exist. Friends on Facebook are not really friends. I can ruin any party/social setting in mere seconds.
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