The Federal Government operates Fannie Mae and Freddie Mac, the largest mortgage GSEs. The Federal Government operates the largest military in the world. I am suggesting the Federal Government take whatever actions are necessary to ensure and protect a functioning economy, whether that's acting as a consumer or producer of last resort.
I am aware of the devil's arrangement this is with the current administration. This administration, like all administrations, is temporary.
Note how current "cost effective" supply chains have collapsed significantly [1]. Survival of certain supply chains, distribution networks, and institutions is preferable over a few percentages in cost savings.
https://en.wikipedia.org/wiki/National_security ("National security or national defence is the security and defence of a nation state, including its citizens, economy, and institutions, which is regarded as a duty of government.")
Emphasis mine. Conversely, "efficient" businesses like Hertz (who ran at max capital leverage) are realizing the cost of doing so (including Carl Icahn, who lost $1.6 billion in the process). I think it's a bit silly to assume all private businesses are more efficiently operated than government (and does a grave disservice to hard working civil servants), but I'm happy to reply with bankruptcy after bankruptcy to prove my point [2].
They're the mechanism by which it is ensured that only efficient organizations stick around. They're the economic equivalent of a civil servant getting pushed out of their position because an elected official is afraid of losing an election, except they are much more direct.
I am aware of the devil's arrangement this is with the current administration. This administration, like all administrations, is temporary.