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In this phrasal verb video, we are going to learn what is the meaning of 'bail out.'
'There's one thing that we can all agree on... we all hated the bank bailouts.
There's one thing we can all agree on. We all hated the bank bailouts." "The only way
to save the company is to bail it out. The only way to save the company
is to bail it out." What does 'bailout' mean? Well, a 'bailout,' or 'to bail a company out,'
means to give a failing company money so that it can continue its operations and,
hopefully, the situation will change. Now, most of the time, a company is bailed out
when an investor... you know, somebody with a lot of money... decides they are going to
put their money into the failing business and change it from a poor-
performing business to a well-performing business. You know, it's going to make a
lot of money. But people get really upset when governments bail out companies. So
when a government sees a failing business, and then throws money at that
business, people think the government cannot turn that business into a
successful one. And furthermore, even if they could, they are taking a risk. If
it's a regular investor with his own money, that's okay. It's his risk. But when
a government is bailing out a company, the government is risking the tax
dollars - the tax money - of everybody who lives and pays taxes to that government.
And that's why people got really upset in 2007-2008, when the United States
government bailed out the big banks when they were about to fail. You see,
people thought if the government did not bail out the banks that the world
economy would become bad... that we would have a depression... really bad times. Now
we'll never know because the government took American tax money and threw it at
the big banks. And this also creates a situation: the situation is... you give
somebody money after they made a bad decision... they may continue to make the
same bad decisions, and it doesn't change anything. That's another thing that
worries people. So, imagine you're in a boat. The boat is sinking underwater,
right? And the reason the boat is sinking is because water is going into the boat.
Maybe there's a hole in the bottom of the boat. So, how do you keep the boat
from sinking? Well, you take a container - like a water bottle, or a bucket - and you
start taking that bucket, filling it with water that's in the boat, and moving the
water outside the boat. That way, the boat does not fill up with water, and it
doesn't sink as fast. And that's where bailout comes from. Think of the boat as
a company, and water as money problems, right? You can use bailout as a noun, as
in, 'The company got a bailout.' Or, you can use it as a verb, like this: 'We need to
bail out the organization.' Did this help you? I hope it did. Please LIKE, SHARE, and
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Here's the Phrasal Verb playlist, and one more video I think you might like. I'll
see you over on those lessons. Take care, English Winners!