Paul Soglin: Waxing America

COVID-19 No Bailout for You #2

Twice since the 1990's greedy corporate hoodlums took advantage of the bailouts. The Savings and Loan crisis and the Great Recession resulted in public money used for excessive  private gain.

• Executive bonuses greater than an entire American family of five make in a year.
• Leveraged buy-outs by corporate raiders using money that was not theirs
• Stock buy backs
• Political gifts to key members of congress who voted for the legislation.
• Shifting of personal profits off-shore to escape taxation on the gains

All this can be corrected with simple requirements by the gate keepers. Here is where we need the rules and regulations - not on grants to the small businesses. And if you do not like the requirements, tough. No one is making you take the money.

• No corporate political contributions
• No individual political contributions to PACS by six figure employees.
• No bonuses - you did not save the company, we the taxpayers saved your asses.
• No acquisitions.
• No stock buy backs for a decade
• All employees get a base of $17.50/hour, full health insurance, a retirement plan and 90% of the workers must work a minimum 32 hour week.*
• No increase in contracted workers so as to avoid the employment criteria.
• No off shore bank accounts.
• I'll think of some more, just give me time.

If you do not like the terms, tough. Go away.

 

*That is to ensure that employees are eligible for all benefits.

COVID-19 "95/5 Rule" Post #1

The federal and state COVID-19 response to assist small business is already fraught with major impediments. Government must approach the financial crisis with the 95/5 rule.  Assume that 95% will follow the rules and are not going to abuse the system. That means none of the traditional SBA, Commerce Department nonsense requiring extensive documentation, forms and requirements.

The money needs to go into the hands of these businesses. Now. A recovery that takes a year is no recovery.

Yes there will be fraud and theft. Save the handcuffs for the giant corporations:    

 

•         No executive bonuses for a decade
•         No stock buy backs
•         No corporate political contributions*

But for small businesses get the money into Ma and Pa's hands now. The fraud in assisting small businesses will pale in comparison to what the greedy did in the Savings and Loan Bailout and the Great Recession.

 

*Citizens United may allow corporate contributions but there is no problem denying federal money as a condition of a loan or grant.

 

Editor's note:  When I left office a year ago I decided not to comment on any public matter. COVID-19 is too important and so here is the start of a series of posts on the subject.