OK, we all know the Federal Government is sending out stimulus money to keep people afloat (food and necessities) and to businesses (to keep them from going under. I think we all agree (well, most of us) that keeping people from starving and under-a-roof, etc., is a good thing - at least to avoid violence and mayhem.
There are limits to any nation’s largess and ability to sustain crushing debt. Do we need to be selective in saving certain critical industries and companies at eh expense of less vital ones?
What about businesses? Which businesses and industry sectors should be saved? Certainly, we know that the aerospace, automotive, pharmaceutical, machine tool and, steel industries are vital (both for defense and trade), but should we give (or loan) money to local small businesses, such as restaurants, craft shops, bike shops, etc.
Certain industries are difficult to enter due to the cost of entry and research required (e.g., aerospace), while other are easy to enter (restaurants being one example). Do we prioritize some industries at the expense of others?
On a related front, as a taxpayer, I am very willing to keep the vital industries afloat, but I want a return on my “investment”. Perhaps as a condition of a loan, the taxpayer receives interest (at a low rate), or receives stock in the company. This latter situation has a precedent in the 2008 financial meltdown – the government invested money into GM and received stock that they later sold, mitigating the loss of taxpayer funds.
“Through the Troubled Asset Relief Program the US Treasury invested a total $51 billion into the GM bankruptcy. Until December 10, 2013, the U. S. Treasury recovered $39 billion from selling its GM stake. The final direct cost to the Treasury of the GM bailout was $11-12 billion ($10.5 billion for General Motors and $1.5 billion for former GM financing GMAC, now known as Ally). Local tax incentives amounted to $1.7 billion, most of them in Michigan. A study by the Center for Automotive Research found that the GM bailout saved 1.2 million jobs and preserved $34.9 billion in tax revenue.
See:
https://en.wikipedia.org/wiki/General_Motors_Chapter_11_reorganization#BailoutsWhat are your thoughts?
