On November 24, 2008, U.S. Republican Congressman Ron Paul (R-TX) wrote: “By saving bankrupt companies, they confiscate money from productive members of the economy and give it to failures. By helping companies with outdated or unsustainable business models, the government prevents their resources from being liquidated and made available to other companies that can use them more efficiently and productively. One of the essential elements of a healthy free market is that success and failure must be tolerated if they are deserved. But instead of a bailout, the rewards are nullified – the profits of successful companies are attributed to failures. I do not know how it is good for our economy. It won`t work. It can`t work. .
Bail Out Agreement Meaning