Too big to fail is too short minded for longer economic growth.

As a side conjecture I will first address the free market and the fallacy of the idea that TBtF would ever exist in a free market. Free market or laissez faire holds truest to the idealism's of a hands off philosophy, in that TBtF would be the last thing that the free market would seek out. The innovation of TBtF was an economic policy entirely separate from free market capitalism. Now let me address the argument at hand. R1: Treasury Stress Test and erroneous cited researchI would like to note that my opponent uses the US Treasury's stress tests as a source stating that the tests came back with positive results. While this may be true the source that my opponent used is simply a definition of stress tests therein bears no credentials to back his statements of stress tests yielding positive results. Also to note the Bloomberg article states that a mere $1.2 trillion was given to banks to subsidize failure, whereas the Levy Institute article references a $29 trillion bailout. The Levy Institute article also references the Bloomberg article but states that the sum Bloomberg had founded under the "Freedom of Information Act" was $7.77 trillion. This again contradicts the article going on to state that the Bloomberg information was lacking in a total of $21.33 trillion. I am to assume that one, if not both, of these sources is not credible and I will leave that to the Con to decide which source he would like to keep. C1: The Panic of 1907 in relation to TBtF. The panic of 1907 is very similar to that of the 2008 TBtF doctrine, the difference is that the Panic of 1908 was dealt with privately, whereas the 2008 TBtF was dealt with publicly. " the Knickerbockers Trust, the second-largest trust company in the United States, was forced to suspend, triggering fear throughout the country and massive cash withdrawals from New York City banks." [1] This can be related to the failing of Lehman Brothers at the time the Second largest investment firm in the United States directly behind Goldman Sachs. J.P. Morgan purchased government a total of half the issued government bonds to subsidize the further failing of banks. "The dollar volume of bankruptcies had spiked by 47 percent, and unemployment had risen from 2.8 to 8 percent. Ultimately, the Panic of 1907—one of the most severe financial crises in the United States’ history—led to increased financial regulation by the government and the creation of the Federal Reserve System in 1913." [2] The Panic of 1907 was very similar to the TBtF issue the differences, the 1907 Panic had lower unemployment, a quicker turn around period, a more united private sector front, a roaring economy in the 1920's, most importantly it was privately not publicly subsidized. C2: The banking industry failed out of moral hazardous behaviors the auto industry failed due to lapse demand. In any economic retail system we can agree that it runs based off of supply and demand. This did not apply in 2008 when two automobile manufacturing organizations where threatened with bankruptcy due to shrinking demand. These automobile manufacturers did not however fail as the government stepped in and declared them TBtF, Let us examine this notion of these auto manufacturers being TBtF, pre recession the auto manufacturers employed 1.1 million people. [3] In the United States there were in 2008 304.1 million people. [4] Assuming that every automobile manufacturer were to declare bankruptcy, unlikely as Chrysler and GM were the two companies most affected by the recession; also assuming that none of the workers were to gain new employment, also highly unlikely, we would see a mere .3617% increase in unemployment. Not to mention that these automobile manufacturer's are failed bailout Investments, with GM failing to pay $11.4 billion, and Chrysler failing to repay $1.35 billion. [5] These failures on by these companies to repay money borrowed are a weight on the taxpayers. Long term planning for the economic malaise that haunts us now is the reason that TBtF should not be instituted. [1] http://www.thegoldstandardnow.org... [2] http://www.fas.harvard.edu...[3] https://www.cars.com...[4] https://www.google.com...[5] https://projects.propublica.org...