Part 7/12:
The infusion enables Intel to accelerate R&D efforts, especially in promoting newer, more efficient semiconductors critical for AI, defense, and data centers. The investment could catalyze breakthroughs that maintain the US's edge in technological leadership.
The Concerns: Risks and Drawbacks
While the positive outlook is compelling, several significant concerns cloud the picture:
1. Moral Hazard & Market Discipline
The bailout raises moral hazard issues—it signals that large firms might expect government support during downturns, which could encourage risky behavior and wasteful spending. Historically, government bailouts of "too big to fail" entities have incentivized reckless risk-taking, potentially leading to capital misallocation.