Home Forums Hunting & Shooting Hunter's Campfire Why bailout any Corporations?

I apologize on the front end of this post for my lack of understanding for many things within this question. I just don’t understand the “Why”...If you want to flame me for my ignorance, enjoy yourself 😎

Why would the Federal Government consider bailing out any corporations at this moment who are being adversely affected by COVID-19 when many of these companies have made billions of dollars in profits from all of us during our lifetime?

If these corporations have had multiple million dollar profits per quarter, why can’t the Feds say: We the government of the people are going to require all profitable corporations to dip into your profitable portfolios and continue to pay all your current workers their salaries and wages until the situation is under control.

If corporations have investors or companies have Angel Money, everyone knows there is risks involved running an organization, some seen and some unforeseen, but it’s a system of risk and reward.

This situation, though unfortunate and unforeseen is likely temporary - Why then should the American people have to bail out anyone who still has profitable paper?

So, what if they’re yearly numbers are tanked compared to their original forecasts for profits and growth?....Investors don’t get a check, Angel Money won’t see a return on their investments for a longer period of time.....It all was a gamble to begin with.

If a corporation spends their profits keeping their employees paid and then have a negative balance sheet...America probably wouldn’t have such a bad taste in our mouth when the Federal Government agrees to offer financial assistance to help them recover....But, not back to a point where the rich are more enriched....Remembering business is a gamble.

That’s my short version of question...Hoping some will understand the “Gist” of what I’m asking....😎


Example.....

https://www.dailymail.co.uk/news/ar...signs-Boeing-board-airlines-bailout.html

Yeah, I understand we need certain infrastructure and it's in the nation's best interest to support it, but the airlines getting a bailout really ticks me off. The industry as a whole pays their CEOs hundreds of millions a year, every year. At the same time they have offered worse customer service and more fees. It's not that I'm against corporate greed, I'm just against taxpayers propping them up in the rare times they aren't making obscene amounts of money.

Airlines are always a boom or bust operation. They're either making money hand over fist or in bankruptcy, there doesn't seem to be any in between. When times are good, like they have been for the last 10 years or so for them, they give their executives huge bonuses and use the extra money on things like stock buyback schemes. They know a downturn is inevitable and they should be stockpiling cash to deal with it, but the greed is too strong and they know they can just run to the government for a bailout or declare bankruptcy to get out from under their obligations and screw their employees. The options for government bailouts need to be taken off the table for these guys, it's a pattern just like welfare for single mothers that keep spitting out kids they can't pay for when they know the government will just give them money.

Privatize profits, nationalize debt, a sure recipe to take down a nation

Tag

Did you forget you started this ? 😂

This seems about right, for a lot of corporations...Pay your fûckn people, you greedy bastards...😎

Laffin.....Trying to catch a fish...😎

In times like this.....the private sector must lay employees off......the public sector employees just take time off on the taxpayer dime.......full pay and benefits.
And corporations are evil.

If you have a good thing going.....always expect company. There are exceptions, but competition normally minimizes profits. No so with the public sector.

Corporations are the cash cow at the Federal, State, and local levels. Manufacturing facility property taxes alone, independent of property values. They just increase every year.

Why does the paycheck to paycheck working stiff deserve a payment?

Flame on.....may be a few hours til response.

I don't think anyone should get bailed out except arguably depositors in banks because that has been going on since 1933 and has given stability to the financial system bigly.

As you said, people who engage in business or buy stocks need to put on their big boy pants and understand that its a gamble. Sometimes it does not work out. Being back stopped by the man with the magic printing press leads to reckless behavior which leads to the need for more bailouts. Bankruptcy does not mean that companies necessarily disappear. Someone buys up the assets cheap, the debt and equity gets cancelled and they start over. See GM in 2009.

Had they let the system go belly up in 2009, financially responsible people would have been able to buy houses and other assets for pennies on the dollar and the Dow would have gone to about 3000. It would have been 1929 all over again but we eventually got over that. It could have come back on solid footing instead of the debt laden mess it is now.

Instead, they reflated it, rewarded irresponsible behavior, and now its needs bailing again. That is not capitalism. A whole generation of people think it is, see the inherent unfairness of it, and are apt to think socialism is better.

All that said, the thing that IS different now is that the government, rightly or wrongly, has completely lost their [bleep] over this virus. They created the recovery we have had since 2009 and now have created the bust of 2020.

First you must understand who owns corporations and where their profits go.

Just to keep it short, if you own a 401K, an IRA, or a pension plan, YOU are a corporation owner.

Full pay and benefits on unemployment?

Corporations didn’t build a city on rock and roll...It’s the workers who built it, fed the machine with their tax dollars, and keeps the machine oiled and running with their paychecks....Not the corporate big wheels who give huge bonuses when times are good and play hide the salami when shtf, and come groveling to the American people for bailout....Fûck um all 😎

Didn’t see this Steve...So, you’re saying that corporations profits and losses are tied into large, bundled pensions and if they sink, so does a lot of people who are retired? 😎

The government did a lot of baling in 2008

There are so many in this country who believe any type of catastrophe, disaster or strife needs to be remedied somehow by our government. This is crap. Provide emergency services? Yes, absolutely. Replace people's lost income, property, home, etc.? No way, including mine. The only extent to which the government should be involved in such things is through, eliminating its own interference. The government should be involved in emergency services during such times. I think most agree with that. Beyond that, they should create or, better stated, get out of the way of a business and economic environment that will allow people to succeed.

On an ancillary topic, if the government were to cede back to private charities that which is more appropriately handled there than through government programs, a lot of the "trials and tribulations" associated with situations like this would be much better handled. It is amazing what can be done at the local level.

I think much of this isn't protecting the corporations. It's to keep the stock market from collapsing even more. I know my IRA has dropped 22% in the last couple of weeks.

That is true but those people have invested in equities and made a speculative bet as to their values, usually without doing much homework. Same with people who buy houses with a mortgage which is essentially being long the house on margin. Under an actual capitalistic system, they are not owed a positive outcome by fellow taxpayers and future generations. Under whatever it is we have now its come to be expected.

I bet a lot of the "capitalists" with their hands out now and in 2008 hate welfare for poor people. Young people are not stupid. They see the hypocrisy of what we are doing and that is why they are vulnerable to a full blown communism and are liable to one day vote it in and take us with them.

A lot of it starts with illegal takings.

If workers are not paid, if workers can get a better job elsewhere, or they do not like the working conditions-they will seek employment elsewhere.

If capital is not paid, if it can earn more elsewhere, or it doesn't like working conditions (ie regulatory or tax policy-it will seek employment elsewhere.

Without capital, labor has no job. Without labor, capital has no job.

The amount of corporations that can stop making money, totally, for 2-3 months and survive is small. Yes, some biggies can, but expenses remain, airlines still have to maintain planes, pay fees for gate slots in airports around the world, etc. If they conserve cash by laying off people, that has an effect as well. Taking an airline CEO's bonus and applying it to salary for the company sounds good, and would work, for about a week or 2.

Smaller companies simply can't afford to stop income for months while maintaining staff.

The economy is a system, changes in one piece have effects on other pieces, feel good moves, like tell them to pay people even without income, or raise minimum wage while they look and sound good, have effects. I fully expect forced sick leave to result in layoffs as the small companies simply can't afford it.

Add in the stock market where people worry about money and panic buy/sell just makes it worse. Decisions made for the good of the economy aren't always good for the individual.