Posted on 03/25/2020 5:13:36 AM PDT by Kaslin
This raises future expectations. From now on, they will be expecting a handout when there’s a crisis, and be more likely to take risky actions!
I don’t understand the Boeing bailout. Their problems were self-inflicted with the 737 Max and the Air Force tanker, not a result of the Cornoavirus.
The U.S. government isn’t bailing out the airline industry to save air travel. It’s bailing out the airline industry so these companies can pay for all the new aircraft they’ve purchased from Boeing.
NN Taleb has written about "Skin in the game". If Business leaders take risks and profit from good outcomes but can offload to taxpayers the losses from bad outcomes, then business leaders will always favor risky ventures. That's not what you want.
All the airlines need is gap money and the ability to break the union stranglehold and the stranglehold isn’t going anywhere. Two months from now they’ll be making money hand over fist with cheap fuel prices.
Chew on this, most of the Unionized employees at the airlines will vote Democratic(socialist) come November.
I was never a fan of T.B.T.F. the last time around.
We had three big auto manufaturers, although they are not all ‘domestic’ corporations anymore, and a great history, but still I believe that a kind of darwinism for corporations is a good thing. If you can’t keep your ship seaworthy, it’s going down.
On the other hand, domestic airlines are a bit of a strategic concern. I remember saying over twenty years ago that we should pass a Domestic energy national security act where by the means of production, conversion (or refinement), and distribution should all be made robust and free from foreign influence. Well, in some ways, we’ve got there anyway, particularly with production. Airlines are not as crucial to the entire economy as energy is, but it should not be overlooked.
Small businesses should not be penalized for this whole mess, but to compare them in general to the airlines, I think, is just divisive. There are different standards for assessing their strategic importance.
The ones who are really screwed here are all the gig workers and freelance/independent workers.
No unemployment, no free money other than the $1200 bucks going to everyone else.
Meanwhile literally trillions and trillions to large corporations.
Screw the cattle car airlines. I don’t care. They sacrificed security for profit a long time ago, ala 911.
Money given to any business should be a loan, zero interest, repayment schedule to be determined by each businesses return to profitability. Any business that was not in good financial condition at the end of 2019 is not eligible. No handouts.
Airline bailouts should be conditioned on (1) Make all seats sized for current average American, at a minimum, (2) Make all onboard (or at least one on smaller planes) restrooms sized for current average American, at a minimum, (3) set up support animal to include dogs only and only when properly licensed and trained (such as those used by vets), and (4) Require full refund for any flight delayed on tarmac over 2 hours or otherwise over 4 hours. Give passengers some real bill of rights as condition for public bailout.
Airlines Shouldn’t Be Given Better Bailouts Than Small Businesses
All businesses go thru periods of "not good financial condition". They should not have to die because a politician panics and shuts any chance of that business recovering. Loans sound great until you have to wait for months and file endless paperwork to be even eligible. Also, many people have jobs at businesses that aren't in the best financial position.
1. I cannot deduct the cost of medical insurance on my taxes. This is absurd on its face. Not only is health insurance fully deductible for companies who insure their employees, but this is also a TAX-FREE benefit for those employees as well. This makes no sense.
2. I am not eligible to collect unemployment. This one actually makes sense for obvious reasons: a business owner can’t lay himself off, and providing unemployment insurance for sole proprietors is a major incentive for them to game the system. But I would certainly recommend a corrective measure where small businesses are able to put aside a percentage of their pre-tax gross revenues in cash reserves that function like retirement accounts but can be tapped as needed during rough times like this.
Sure, no bailout, let them all go bankrupt, put all their workers on unemployment, let them sell apples, let them drink themselves to death, let them commit suicide.
It is not proper for the federal government to bail out small businesses or airlines.
I have no problem with necessary and proper tax refunds.
Historically, the airline industry has enjoyed enormous financial support for the government as part of our National Defense. Rapid Mobilization Capacity. By law they have to turn over everything to the government on a moment’s notice. They have never been “notified” AFAIK but it’s there, in the. Laws.
Metro NYC corporations might form Club 737 New York and buy financially distressed airliners.
Timeshares in airliners might be offered to Mayor Pete’s city and others.
That ship sailed a long time ago. Or should I say, that Plane took off a long time ago.
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