Concept in Definition ABC

The term rescue has multiple meanings depending on the context in which it is used. Thus, in a religious setting, the ransom is the spiritual salvation of a person, while if it is used in reference to a kidnapping, then we would talk about the payment required to free the person or object that is as a hostage.

On the other hand, in the event of a tragedy or dangerous situation, those individuals who need help are rescued. emergency.

Along with the previous meanings, the word rescue is also closely linked to the world of finance and economy.

A financial rescue is the way in which the liquidity injections that are injected into an entity are called to try to recover it from a bankruptcy or a dangerous situation, so that it can meet its obligations in the short term term.

The financial rescue dilemma

As a result of the 2008 economic crisis and its consequences, financial bailouts have been the order of the day, being applied both to private entities and to the economy of entire countries. For this reason, there has been a wide controversy in expert circles about whether this type of rescue is really effective or if they only serve to solve a conjunctural situation, but without maintaining their positive effects over the long term term.

In any case, when one of these rescues is carried out, it is usually treated by rule general situation of extreme situations, in which the possible fall of a strategic sector could have a domino effect on the rest of the country's economy and cause negative results to be multiply. Faced with this situation, the financial rescue is presented as an irreproachable measure to maintain the well-being of a nation and reinforce safety from his economic system.

But nevertheless, there are experts who defend that these monetary injections only discourage the leaders of the affected entities in order to be more careful in the future. Knowing a fundamental part of the economy, they are not afraid to make risky moves that can bring dire consequences, since they know that they will always have the Government's safety net waiting for them in their drop.

The problem with this form of think is that in the end the consequences of these actions are not assumed only by the person responsible for them, but by the rest of the population that through his taxes he has to pay the ransom.

Thus, bailouts are always viewed under the magnifying glass of the Moral dilemma, having to balance the risks and benefits that this type of actions can entail for the economy of a country in the long term.

Photos: iStock - SeanShot / Sjoerd van der Wal