> Doesn't this cause more problems in the long run propping up businesses that can't survive two months without a bailout, err loan?
Yes. This is why I anticipate the effects from this to be dramatic, horrendous, far-reaching, and long lasting.
This administration's stance on the economy is to do whatever it takes to ensure certain businesses don't go under. Up to and including straight up, permanent corporate welfare. This started with the collapse of the fossil fuel industry due to the glut of cheap natural gas, then continued when the trade war devastated our agricultural industry. I am certainly not surprised to see the government extend this policy to basically every business in the US.
The big problem is there seems to be no oversight or incentive for these business to keep going. Dairy farms are dumping milk down the drain and reducing herd sizes because there's no market for their products. Why would we just continue to pay them to produce nothing? You could get much better outcomes through the government buying up the end products and distributing for free to people in need. Remember "government cheese"? Bring back government cheese.
I completely expect this situation to spiral out of control and become an epic disaster. This is going to be a 10-trillion dollar suicide. We are paying companies to literally stop operating, and we are pissing off all of our long-term allies at the same time. Don't be surprised if these countries are shrewd negotiator when the US comes crawling to them for aid.
I bet we'll still be discussing this come the 2024 election...
Yes. This is why I anticipate the effects from this to be dramatic, horrendous, far-reaching, and long lasting.
This administration's stance on the economy is to do whatever it takes to ensure certain businesses don't go under. Up to and including straight up, permanent corporate welfare. This started with the collapse of the fossil fuel industry due to the glut of cheap natural gas, then continued when the trade war devastated our agricultural industry. I am certainly not surprised to see the government extend this policy to basically every business in the US.
The big problem is there seems to be no oversight or incentive for these business to keep going. Dairy farms are dumping milk down the drain and reducing herd sizes because there's no market for their products. Why would we just continue to pay them to produce nothing? You could get much better outcomes through the government buying up the end products and distributing for free to people in need. Remember "government cheese"? Bring back government cheese.
I completely expect this situation to spiral out of control and become an epic disaster. This is going to be a 10-trillion dollar suicide. We are paying companies to literally stop operating, and we are pissing off all of our long-term allies at the same time. Don't be surprised if these countries are shrewd negotiator when the US comes crawling to them for aid.
I bet we'll still be discussing this come the 2024 election...