Seems to me most of these industries need loans to cover expenses for a year or so and then resume operations when a vaccine is available. Bailouts, if structured right, can basically be like the auto industry or bank bailouts where hundreds of thousands of jobs are saved and the government actually makes a profit.
I would not help the shale gas companies but otherwise I don’t see the big objections if the government is borrowing money to 0.5% or whatever the rate is for 3 year treasury and loaning it out at a couple percent to United Airlines, Carnival Cruises or even MGM Grand.
I don’t even care if equity is 100% wiped out. People will be angry about the moral hazard but it is much better for employees and other stakeholders if these companies don’t go through some bankruptcy process.
the gf just called me with a lot of second hand stories of looting/bank robberies/home invasions as well as guns and ammunition being all sold out. It’s probably all bullshit, but I don’t think it’ll be a slow change, just one day everything will be fine, then the next it’ll be basically chaos.
The bailouts need to come now, and it needs to cover literally everyone, that’s the only way. Any sort of historical retelling of this time period should see people like obama and pelosi, all the dems telling us that bailouts are a bad idea as the main villains.
Any idea if this will be based off current salary or past taxes? Cause if its prior taxes I’m fucked, but I’m out of work now and could really use the cash, so… kinda a shitty situation for people like me, or basically anyone who had a good job that is now going to be unemployed in the near future.
Situations like this are why any sort of means testing is bullshit. I don’t fucking care if some CEO gets $6000. There are more people in this ^ situation than there are fucking CEOs, just give everyone some damn money.
I agree. Means testing almost always has a lag so if you want to means test a 2020 benefit you usually can only get info on 2019 income from the tax authority. And then you can do clawbacks the next year. In other words a big administration project. Not worth it. Easier to give is to everyone and then pay for it with an additional progressive tax to establish implicit means testing
Means testing should if ever implemented be based on wealth, not income. Since that’s impossible, just give it to everyone. We waste like $2 trillion on planes and bombs and shit every year, a few million rich people getting $2k isn’t going to be a major issue.
