Why is the government spending all this money with stimulus packages for large company's?

Why is the government spending all this money with stimulus packages for large company's, when most of the country has bad credit. due to the fact that credit card company's, and other corporations give people loans, and credit limits they know they cant afford. Solution, why not wipe every ones credit clean since we are bailing out all these corporations, and banks.Why not just bail out the consumer, and make banks, and Corporation's? Then make people ,and company's more responsible. Then make loans a little harder to get, and stop giving 20 credit cards and a $500,000 dollar mortgage to people making $25,000 a year. The stimulus packages are a joke $500 here or there is nothing. Can any one that has any idea about financial politics answer this for me? On why wiping credits clean.Thanks

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  • Anonymous
    1 decade ago
    Favorite Answer

    Doom doom doom doom doom

  • 1 decade ago

    First of all, wiping credit clean means a lot of businesses (and therefore American citizens) can no longer rely on money that was promised to them. Americans have debt, yes, but they also have investments (retirement accounts, pensions, portfolios) that are supported by the debts of others. So if you wipe out credit records, you're hurting people as much as helping. It's a zero-sum game.

  • 1 decade ago

    They believe they know how to best serve the companies and hence their employees. I'd rather have us the consumer get a check and get told to pay off your mortgage; pay off your credit card; put x% into the ira/401k; and put y% in a savings account. if we had all that money off our butts; we could actually start spending again and get the economy back.

    It's like we are the serfs and the companies are the vassals.

  • erly
    Lv 4
    4 years ago

    right this is the section i are not getting, in the event that they are able to print as a lot money as they decide to, to "bail out" the banks, why do they could thieve our money too? the only "financial disaster" is, they don't have sufficient printing presses. meanwhile, they supply extensive tax breaks to the drug cartels, interior the billions of greenbacks. In a mode, they are investment the two factors of the drug conflict, the CIA strikes extra drugs interior the US than, any cartel, or maybe they do no longer fee tax, so we've government businesses violating the tax code, yet whilst we did that we'd visit reformatory. go parent.

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  • 1 decade ago

    Because you can't "make" people take personal responsibility for their actions. I don't think you've ever taken an economics course. If you had, you would understand the role that "credit" has in the US economy.

  • Anonymous
    1 decade ago

    I agree with one thing- make loans harder to get but not so hard that it would stifle job creation. It would be nice if we could make it harder to get credit for buying foreign items.

  • Anonymous
    1 decade ago

    Because they have the largest impact on the nation as a whole

    .

    The domino effect that they cause to happen can go in either direction

    .

  • Anonymous
    1 decade ago

    Because their are still some people who beleive trickle down economics works.

    I say it doesnt but thats just me

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