How do some companies print money?
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Some companies seem to "print money" through a combination of government financial maneuvers and Federal Reserve policies. According to , the government injects money into the economy by issuing new debt, which the Federal Reserve purchases. This complex financial system involves the Fed creating special purpose vehicles to buy corporate debt and even equities directly from companies 1.
This process can shape the market by "picking winners and losers," which is contrary to traditional capitalism. Instead of businesses thriving based on their ability to satisfy customers' needs and generate profits, some companies (often referred to as "zombie companies") survive through financial support despite being unprofitable. This support stems from central bank policies that essentially keep these loss-producing enterprises on life support 1.
The injection of funds by the government and the Federal Reserve into specific companies can be seen as a form of wealth redistribution, which can disrupt the natural market forces of capitalism that typically eliminate inefficient businesses 1.
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