Saturday, October 22, 2011

A Shower of Gold


From Anything But Arm's Length Bailouts at Bread and Butter. Ohm writes:

When a company screws up on its finances and business model, throwing a lifeline at it with additional tax breaks or Government purchases, most of all Bailout dollars, does not imply the company will add employment. It adds employees when there is additional money that its target customers have that it can win by selling more of its products and services. Getting a money shower from above makes it unnecessary for the company to fight more in the market with more employment.

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