"Capitalism without risk of failure becomes socialism" is the essence of the moral hazard of government bailouts.

Question

Quizplus · Accepted Answer

The statement accurately reflects the moral hazard of government bailouts, where companies can engage in risky behavior without fear of failure knowing that the government will bail them out. This undermines the principles of capitalism and can lead to an economy that resembles socialism.

"Capitalism Without Risk of Failure Becomes Socialism" Is the Essence