The plethora of support schemes—there are at least ten in America, with different eligibility rules—will baffle some firms and exclude others
month the biggest business handout in history has begun. The goal of helping firms survive temporary lockdowns is sensible, but it is hard not to feel uneasy . At least $8trn of state loans and goodies have been promised to private firms in America and Europe, roughly equivalent to all their profits over the past two years. Over half a million European firms have applied for payroll subsidies.
Ideally private investors would swoop in—Warren Buffett is sitting on $125bn of spare funds and Blackstone’s funds have $151bn. But the duration of lockdowns is unclear, so they may be reluctant. As a result, alongside widely available cheap state loans, bespoke state bail-outs are starting. America’s latest stimulus package earmarks at least $50bn for the airlines and other firms vital for “national security” .
What to do? Governments need to offer support for business in an integrated way. There should be blanket offers to all firms of cheap loans and help in paying the wages of inactive staff for three to six months with few strings attached. This is what the $8trn of loans and guarantees mostly try to do, but there are gaps and doubts about how small firms will get cash.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
The Far Right Is Looking for Miracles and Scapegoats to Bail Us Out of the Coronavirus CrisisA distressingly large portion of the American political spectrum looking for scapegoats rather than solutions.
Read more »
Governments are once again splurging to keep big companies afloatAmerica's $2trn stimulus includes loan guarantees that could fund more than twice as much in corporate borrowing. Who will need help?
Read more »
Hunting for coronavirus 'patient zero' is toxic and dangerous | OpinionHistory shows how the term patient zero leads to blame and scapegoating.
Read more »
Logan Paul's toxic past from racist tweets to filming dead body in horror pranksLogan Paul has been at the centre of many scandals after shooting to fame on Vine and YouTube
Read more »
Noel Gallagher's wife claims their son has never met Uncle Liam amid family feudSara MacDonald has admitted her fears that Liam Gallagher could turn on 12-year-old Donovan and Sonny, nine, amid the toxic family feud
Read more »