---
title: "A example of one of the great virtues of capitalism:  eventually,…"
date: 2020-10-22
source: facebook
type: Archer T. Ships shared a link.
---

# A example of one of the great virtues of capitalism:  eventually,…

*October 22, 2020 · Facebook*

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[https://variety.com/2020/digital/news/quibi-considers-shutting-down-jeffrey-katzenberg-meg-whitman-1234812313/?fbclid=IwAR3-XYN4S3hogRPvMR3NFV8RHbIH_ouT6iutQOeq_ngxZ7SYc5BXGAmFclE](https://variety.com/2020/digital/news/quibi-considers-shutting-down-jeffrey-katzenberg-meg-whitman-1234812313/?fbclid=IwAR3-XYN4S3hogRPvMR3NFV8RHbIH_ouT6iutQOeq_ngxZ7SYc5BXGAmFclE){target="_blank"}
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A example of one of the great virtues of capitalism: eventually, poorly run companies run out of money and go out of business, their executives/employees are fired, and any remaining assets are re-purposed for more profitable ventures.\
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If Quibi were a government program, on the other hand, their failure to meet expectations would be used as an excuse to demand even more funding.\
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For example, contrast Quibi\'s fate with the government-run Headstart program. The Headstart program consumes \~\$10 billion per year (the equivalent to five Quibis). However, studies of the efficacy of Headstart programs find that there\'s no discernable difference between control and treatment groups after third grade:\
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\"\...\[T\]he final HHS report published in 2010 showed that by the end of first grade, the effects mostly faded out. According to the 2012 HHS report on third grade follow-up, by the end of primary school there was no longer a discernible impact of Head Start.\"\
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The Headstart program has been running continuously since 1965, so they\'ve had plenty of opportunity to make things work.\
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If Headstart were a private company, it would\'ve\--should\'ve\--been shut down decades ago. Yet US taxpayers will be lucky if Congress even slows the rate of funding increases, let alone cuts the program\'s funding.
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