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should the government intervene in the free market to save failing businesses?

should the government intervene in the free market to save failing businesses?

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Answer #1

NO, unless the business are too big to fail I.e. they paly a very crucial role in the economy, most of the time business fail due to some wrong decisions, overleverage, or failing economies, disruptive technologies etc, in any case that business will be replaced by some other new business that are more effective and efficient than the older one in the economy,

Saving a failing business will set a wrong precedent and that will lead to moral hazard, further damaging the business confidence and encouraging bad decision making.

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