Bailout nation is no longer the correct description of today’s economy. The more accurate term is bailout world. It seems like whenever any economic circumstances work against us, the appropriate reaction in today’s world is to reach out our hand to the respective government institution and expect compensation. After all, being profitable is no longer an opportunity but a right, and any event that compromises this goal of profitability should promptly be resolved by the government.
The event I’m referring to, of course, is the massive volcanic eruption in Iceland. The incredible cloud of ash that has spread over much of the European continent has grounded thousands of airplanes and stranded even more. The economic impact has been incredible. Airlines have reportedly lost over $1 billion in revenues and companies like British Airways are looking for a bailout from the EU.
I work in the tourism and hospitality industry in Orlando, FL, and I’ve even felt the economic impact of the volcanic eruption. Our company had a group from the UK that was scheduled to arrive this week and is unable to travel. The economic impact is broad and far reaching. The difference of course is that the small company I work for will not be requesting a bailout. Must be nice to be “too big to fail”.