There is no question of that.
When a person fails financially, should we expect them to commit suicide? Or should we give them a hand in the hopes that next year will be better? (Or should we have an insurance program for them like California does?)
Same thing with companies, I think. Yes, bad companies ultimately should fail. But bad leadership or a bad business environment can make a good company fail in a year. And if they are a major employer, they can drag the economy down by failing.
I know a woman who grew up in Flint, Michigan. She says that the information about the effects of the plant closing on the community are understated, in 'Roger and Me'.