Bailouts, Buybacks, and Innovation

This chapter critiques the U.S. government's airline bailout during the pandemic, highlighting the consequences of prioritizing stock buybacks over research and development. It delves into the historical lack of R&D investment by airlines and proposes reforms linking taxation of buybacks to incentivizing innovation. Additionally, it examines the broader national security implications, including the competition with China and the need for strategic investments in critical technological sectors.