A Corporation can be "too big to fail"

Many thanks to my opponent, bluesteel. The role of profits:Profits are a signal that demonstrate that a good or service is demanded by society. For example, people buy food, clothing, and such because these goods and services are desirable. Profits = Revenue - Expenses. If Revenue is too low, then this means that the product is not desired, either because there are too many competetiors or the good or service is simply not demanded based onthe expense it takes to purchase the product. Opportunity costs and scarcity:Opportunity costs are opportunities lost due to decisions made. For example, instead of debating, I could have watched television. Resources ar scarce. There is only so much oil, labor, and natural resources. Decisions must be made on where to allocate these resources. So how are these decisions made? Well, in a market economy, these decisions are made by individuals, who either want to maximize their "utility". Producers want to make a profit since money has value. Consumers want to purchase projcts that they find valuable. Material can be used either to give the consumer value, or to make goods or services (capital goods and natural resources). The cost of goods and services reflect the supply and demand for them. A purchaser sells the good or service, since he or she gains utility, in the form of payment, from the action. A consumer buys the good or service, since he or she gets subjective value from the product. One person consuming a resource means that another cannot. So If a company is using resources without making a profit, then waste occurs, since these resources could have been used in other sources. Furthermore, these goods and services do not improve the utility of the produer, since he or she only values them for their ability to make money, however theses goods and services clearly are not. An unprofitable corportion is misallocating resources, bankuptucy reallocates these resources to either consumers or more profitable organizations:As demonstrated above, an unprofitable corporation is simply consuming all these resources without creating value to anybody else. The company is aking away opportunities to other companies that could use these resources instead. Therefore the ideal solution is for the compnay to go bankrupt. Bankrputucy does not mean that the resources the company made are gone, but mearly means that they are reallocated to companies and individuals that can make better use of them, or manage the resources better. Such a system is known as "creative desturction". Through the destruction of some companies and individuals, new opportunies are built for others. These forms of "creative destruction" are necessary to improve economic growth and increase the standard of living. Where would we be If the carriage industry was bailed out, since they could not compete with automobiles? Or what If the telgram industry was bailed out, due to the competition of the phone industry? Society could not have advanced as much a it had. Blockbuster is a modern day example that is unprofitable since people demand the cheapter alternative of Netflix and RedBox. Netflix and RedBox employee many people, the cheaper alternatives give consumers more purchasing power to buy other goods and services, and the removal of Blockbuster allowed its resources to be allocated to other businesses (Ex: businesses could not purchase rental space that Blockbuster used up). Rebuttal:My opponent makes claims that it would be a disaster If goods and service with an inelastic demand were suddenly removed from the market. However this makes too assumptin. First, it assumes that the resources that a corporation had were simply destroyed If it became bankrupt, it simply means that the resources are shifted to a new company or other individuals. It also begs the question of If these goods and services are in such demand, then why is the corporation going bankrupt? Products that are not in demand, are simply not produced. Products that are demanded, are produced. This is the system of the free market.This is the importance of profits, it signals which goods and services are most needed in society. Bailing out losers simply distorts these price signals and create perverse incentives, and do not allow the creative destruction process to occur which will create new goods and services in the market that are more desirable and/or allow better managment of these resources that were previously misallocated. Thank you and I look forward to your response.