Question

mentions the concept of "too big to fail" concept. It is a very important economic concept that we need to understand and its impact. Knowing this please answer following :

-How much money would you like to make and have as assets? (You can imagine as much as you want. Do not short change yourself!)

-What will you do with all the money you acquire?

-How much money/profit should a company make? Does is bother you?

-Think about your favorite company or companies like Microsoft/Amazon/Facebook to answer this question. What will happen if they fail? Does government? Society have any responsibility if they fail?

-Do you know who is the largest employer in your state? What happens if they fail?

-Should you worry about if these companies fail or succeed?

Answer 1

1. I would like to make $100 billion and have $100 billion in assets

2. With all these money, i i would buy all the things i wish to buy and spend money on charity and give a quality life to my loved ones

3. A company should make money in billions. No, it does not bother me as it does not cause me any harm. Infact big growing companies increase employment opportunities and help people make money

4. If such big companies fail, the soceity will crumble as a lot of people depend on such big companies for employment and other things. Failing of these companies would mean loss of employment opportunities as well as fall in government tax revenue

Yes, both government and soceity have responsibility if these fail because it means the government did not help the failing firms by providing them aid and the soceity did not change their demand to help them survive

5. Yes, if he fails then there will be widespread unemployment in our state and people would have reduced incomes and thus lower demand.

6. Yes, one should worry about such companies falling as it would mean a falling economy