Rewarding Failure

I notice in the bailouts we are rewarding failure. With the auto industry, they want to reward more failure. When I went to my granddaughter's basketball game, I could clearly see they also reward failure. I asked her if they cut any players after tryouts. She said they didn't and it shows. Why would you keep bad players on a team if you are trying to win? I hear about other sports not keeping score so everybody is a winner and nobody is a loser. Is this the direction we want our society to take? From my observations, I see this rewarding failure being taught to our children at an early age. I imagine they will carry this mentality throughout there life. They should fit right in the government.