American business once thrived on free market principles. Key among those is that market forces drive out inefficient, unprofitable businesses in order to make way for the capable, profitable firms. If a business wants a second chance, it is possible under the protection of Chapter 11 bankruptcy.
This procedure forces companies to vet a restructuring plan through the courts and compels them, by law, to adhere to it.
Currently, America ignores free market principles, and unprofitable companies remain in business with taxpayer "bailouts." Our government encourages this practice by obfuscating reality, claiming that the American auto industry is "too big to fail."