The airlines were running on one month’s worth of cash when Covid-19 hit.
They ran out of cash because they spent their money on buybacks, trying to get their stock prices up.
This is terrible behavior. They jeopardized their companies. And the government rewarded them with billions of dollars in relief funds.
What we should have done is let them go bankrupt instead.
Bankruptcy shouldn’t be a bad word
The bankruptcy process is nothing to be afraid of.
The airlines would have still continued to operate. They also get financing, which gives them a chance to restructure and bring down their operating costs.
Yes, there would have been more layoffs. Those people would have found other jobs.
Capitalism is a process of creative destruction. Bad businesses die so good ones can take their place.
If our markets were free from government intervention, the prices of…