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"No more government bailouts for industries and banks!  Let 'em fail - that's how capitalism is supposed...

"No more government bailouts for industries and banks!  Let 'em fail - that's how capitalism is supposed to work."  Your reaction?

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Answer - Although the capitalist economy owns the resources by the private individuals and the government has the minimum role to play but , then too as per the statement , the said thing shouldnt happen. Banks make up the whole financial system of the economy. Industry control the manufacturing. These two are the pillars of the economy. Hence , of the losses in the banking and the secondary sector will not be minimised or compensated neither by private individuals or the government , the backbone of the economy may break. Hence proper incentives should be given to minimise the losses in banking sector , overcome the NPA and focus on the sick units. This is how the any type of economy grows , whether social or the capitalist.

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