Too Big to Fail
October 3rd, 2010
A free market is a fairly straight forward concept when you break it down to its fundamentals. Private organizations provide the goods and services for the consumers for private profit. There is no grey area here. This is a black and white concept, it is capitalism. In 2008 a new concept was introduced, businesses can be “too big to fail”. Private companies, usually banks, can grow so big that they literally are supporting the whole economy and if they were to fail the entire economic system as we know it would begin to collapse. When the government supports a corporation with capital it’s no longer capitalism, or is it? Could the economy really fail as a result of the failure of one or more major entities? Is capitalism a system that allows for infinite growth or is there a limit where the system ceases to be feasible?