The feedback mechanism for identifying errors is failure as is the incentive to correct them. Otherwise, we end up in a privatize the profits, socialize the risks situation. As we currently are.
For example, I bid for land for commercial real estate. I have been outbid by another developer who assumes they can pay more for the land because their labor costs will be lower for the business. They want to bet they can get away with paying bottom tier wages, whereas I want to pay higher wages. Or have more redundancies or use higher quality materials. Of course, the land gets sold to them at the higher price, they get to build the business.
Why should they get bailed out? They wanted to take on more risk, in the form of not allow much wiggle room for labor costs or using subpar materials. That is their fault, and society benefits from the market sending a signal from that developers failure to better allocate resources.
>If we were talking about a tech company, would you feel the same way?
Why not? If we were talking about a tech company, would you feel the same way?