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#Bailouts
The Airline industry needs to be at the top of the list. Air travel is key to world wide business. The US system is based on Air Travel more than most countries. The Airlines and Boeing are in big trouble now. I don't know how leveraged they are, but I would bet they are dependent on each other.
Reliance on world wide business is what brought us this pandemic and killed off our economy, one built on international buy-sell, not built on our on-shore production.
I'm 180 from you on this.
Hunt with Class and Classics
Religion: A founder of The Church of Spray and Pray
Acquit v. t. To render a judgment in a murder case in San Francisco... EQUAL, adj. As bad as something else. Ambrose Bierce “The Devil's Dictionary”
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#Bailouts
What are your thoughts?
Lets setup a death panel for business.
YA! her Fuhrer, .... Vee Hof Zee Solution to zee COVID problem!
“Some ideas are so stupid that only intellectuals believe them.” ― G. Orwell
"Why can't men kill big game with the same cartridges women and kids use?" _Eileen Clarke
"Unjust authority confers no obligation of obedience." - Alexander Hamilton
The end of democracy, and the defeat of the American Revolution will occur when government falls into the hands of lending institutions and moneyed incorporations.
My suggestion would have been to not shut down the economy and destroy businesses in the first place. Would have been pretty simple to tell the older sick people, or even younger sick people, to self quarantine if they wanted. If the at risk were self quarantined, everyone else could go about the business of living.
Let's start off with some simple things like farmers, ranchers, growers, dairymen, food processing... Ya know, simple stuff like FOOD !
Food - YES, but small farmers or the large farming operations that supply the bulk of the production? Can we afford to support small farms?
Granted, the largest number of farms are small farms, but larger farms provide over 75% of our food production. (source: Dept of Agriculture)
All producers. Our area is +95% what the USDA would consider small to mid sized producers. Our cattlemen do not need bail out money. They simply need the packers to start paying a reasonable price for animals at the stock yards. We have grocery chains and super markets RAISING the price on meat and dairy claiming shortages. Yet producers are loosing money on each animal. And dairymen are dumping milk. Something is "broken" in the middle of the supply chain. Fix that "break" and our producers should be able to get back in the game.
To be clear, farming and ranching are always a crap shoot. And cattle in our area were at or approaching the bottom of the 10 year cycle before Covid. However, the current situation wreaks of price fixing and market manipulation. As noted in another thread, no one seems to want to enforce the anti-trust laws anymore. Producers don't need a bail out. Just a level playing field.
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. .....What are your thoughts?
Ever heard of the term FASCISM?!?.. cuz that is exactly what you are supporting.
Ah ha. You openly admit it! You support socialism and NOT capitalism! You want to use taxpayer money to support everything, not just the efficient and essential.
Ah ha. You openly admit it! You support socialism and NOT capitalism! You want to use taxpayer money to support everything, not just the efficient and essential.
The government not allowing a business to operate is some how capitalism???