Why the U.S. Should Let the Airlines Go Bankrupt

Some corporations or industries are so intertwined in our national economy that if their going out of business would cause catastrophic dislocations in our economy. The automobile industry is one; banks are another; airlines are a third.
Without governmental intervention, it is likely that most, if not all, U.S.-based airlines will be forced into bankruptcy. Their cash reserves are dwindling; new revenues are shrinking, and they have huge fixed costs. Unless these firms can arrange new...