Payroll taxes are earned by the employed, paid by the employed. Corporations provide the accountant.
Profits are not socialized if govt and tax pool did not gain shares. Loans below market, grants, equity (short and long) and discount sales occur. Difference matters. Generalizing over cases to win a minor point as of it applies to the whole original complaint is a straw man.
The payroll taxes aren't earned by the employed if the employed isn't actually employed, since the company they worked for went bankrupt.
If that's the argument you want to use for what socializing profits means, you also surely have to agree that socializing the losses would mean the taxpayer was worse if than without it, which is what everyone here seems to be implying.
The taxpayer didn't lose money on the bailouts themselves (possibly barely if inflation adjusted), the important part is that if the bailouts didn't happen, the taxpayer would've lost so much more.
The US just kind of works like this. Reckless growth that sometimes results in disaster. We're much more conservative here in the EU, which yes does avoid these kinds of situations but also heavily impedes growth. Which of these options is better is another conversation, but in the long run, it seems to be working pretty well for the US.
You’ve inverted my argument to make your point. I didn’t say that socialization should be what happens generally. Read it again. I clarified the asymmetries in financial favor which is OPs point and you seem structurally intent to misunderstand.
Your base philosophy is the problem and it’s motivating your reasoning. I’m certain you wouldn’t convince me to change my view, nor OP’s. I’ve thought through this numerous times and know where this it’s going and how you will circle.
My layover has ended. Last word to you should you take it.
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u/LufyCZ 5h ago
Profits were socialized, the state made money on the bailouts (even if barely).
These companies also pay crazy amount of f.e. payroll taxes, those would be gone if the companies disappeared.
It was a good deal for everyone.