I agreed with you up until you guys started talking about nationalizing the airlines. Airlines, as well as all businesses, need to be allowed to fail. That is what keeps capitalism balanced. The problem is that we don't really have capitalism in the U.S. anymore. The single biggest problem with the economy is that the Fed has kept interest rates near zero for over a decade. Corporations have been enabled to take on more and more debt than they would otherwise be able to in a free market because there is no price discovery. Companies go public and don't have to make any profits for years and years because their losses are subsidized by the stock market and investors who can borrow money at near 0% interest. It doesn't pay to be responsible and have a sound balance sheet when if you fail, the government is going to bail you out anyways. This only increases moral hazard as more companies are encouraged to be reckless and borrow more. Same with local governments. Low interest rates have allowed states and municipalities to live far beyond their means for too long while running up the balance sheet. Now many governments have no choice but to default or raise taxes higher on their already fleeing tax bases. NYC, Chicago, and Illinois have some of the most toxic balance sheets but refuse to cut spending. Instead they want the Federal government to bail them out so they don't have to live with the consequences of their policies. The problem is that if they get bailed out, then all the responsible local governments would have been dumb to balance their budget so it encourages everyone to be reckless knowing that there is always a bailout to save them. Federal debt is just as toxic but the only thing that separates the Fed from the State and local gov is a printing press.
It's a self perpetuating death spiral that is the U.S. economy and can only be "sustained" by ever increasing debt added to the system. Meanwhile, the wealth inequality gap gets wider until one day it all comes crashing down.
As far as nationalizing the airlines go, we're already headed down that path basically even if they're not outright saying it. If the airlines get bailed out but they have all these stipulations that make it so they can't ever make a profit (i.e. can't downsize, restructure, cut jobs) then they are essentially a zombie company that will need to continually need to be funded by the taxpayer in perpetuity. Everyone is so afraid to let the airlines declare bankruptcy but it is much needed. Bankruptcy doesn't necessarily mean they go out of business either, but rather is a way for them to restructure their debt and downsize to become profitable once again.
prospect.org
simpleflying.com
