The "left with nothing" fear is unfounded. All of their assets would be bought up by investors seeking to do the same thing but the right way; a factory has value and somebody will want it.
Perhaps. But now imagine trying to be the politician(s) selling the "let'em die" idea. Most voters will be thinking, "What if my company is next to go?" and will vote accordingly. Thus there are few very politicians willing to take the high road.
