Coronavirus

$1 Trillion Coronavirus Stimulus Unveiled: Corporate Bailouts and Loans, Checks for All

The package seeks to curb the economic chaos caused by COVID-19.

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The Treasury Department on Wednesday released an outline for a third coronavirus stimulus bill, which includes bailouts and loans for the airline industry, small businesses, and other "critical sectors" of the U.S. economy; a temporary suspension on the limitations placed on the Exchange Stabilization Fund; and direct payments made to Americans.

The $1 trillion package comes as the Trump administration attempts to curb the economic chaos caused by the coronavirus, with many state and local governments imposing widespread restrictions that make business operations untenable. North Carolina, Washington, Pennsylvania, Maryland, New York, Ohio, Illinois, Massachusetts, California, Michigan, Washington, D.C., and others have issued temporary closures or limitations on bar and restaurant service as the nation is encouraged to practice social distancing in an attempt to stop the spread of COVID-19.

Perhaps the most controversial measure of the GOP-led proposal will be the $50 billion bailout of the airline industry. In order to qualify for loans, carriers would need to promise to limit executive compensation until the money is repaid. They also must vow to continue service—a strange stipulation in the face of a global pandemic that numerous countries are scrambling to contain. 

Many Republicans have been skeptical of bailouts in the past. The Emergency Economic Stabilization Act of 2008, signed by former President George W. Bush, bailed out the financial institutions that directly contributed to the Great Recession. From those ashes, the Tea Party was born, as several conservative lawmakers sought to re-establish the Republican Party as the banner carrier of fiscal responsibility and free market principles. 

Some say that coronavirus is a different beast, requiring drastic measures to counterbalance government mandates that are directly harming businesses nationwide. 

"This is not like the financial meltdown, where you had banks that made bad decisions and asked the government to bail them out," said Sen. Marco Rubio (R–Fla.), according to Politico. "We are basically telling people not to go out, not to spend money at these stores, and in some jurisdictions, not go to work…It's an unprecedented challenge."

That may make sense for small businesses, many of which will face insurmountable challenges in the coming months. The plan carves out a $300 billion loan program to address that. But how that logic applies to airlines remains uncertain, particularly as the proposal, in its current form, mandates that they stay open—the exact opposite order given to many small businesses across the United States.

While no airline carrier can be blamed for the inability to foresee an unprecedented global pandemic, the colossal companies have come under fire in recent days for their business practices. Rep. Alexandria Ocasio-Cortez (D–N.Y.) and other progressives have been particularly focused on the issue of stock buybacks and have been pushing for demands from unions to be included in the deal.

Taxpayer-funded bailouts mostly serve to "protect executives, investors and lenders against the effects of poor risk management," writes Joe Crahill at Crain's Chicago Business. "And that means we'll get more of it—along with less legroom."

The plan also specifies that checks will be sent to Americans in the style of a Universal Basic Income (UBI). The measure, popularized by Andrew Yang during his run in the Democratic presidential primaries, reached bipartisan consensus this week when Sen. Mitt Romney (R–Utah) declared his support for cutting everyone a check. As it stands, the stimulus allots $500 billion to be distributed in two payments, with the amount tiered based on income and family size, disbursed on April 8 and May 16.

In addition, the stimulus provides $150 billion for "other severely distressed sectors of the U.S. economy." While the current plan does not specify exactly what those are, this likely refers to the hotel and casino industries—something President Donald Trump floated saving earlier this week, which is likely to generate some pushback.

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  1. You know who’s really suffering? Reason.com’s benefactor Charles Koch, that’s who. Even before the #TrumpVirus his net worth was hovering around a mere $60 billion. And now he’s below $50 billion. Unacceptable!

    Fortunately Mr. Koch doesn’t need a “bailout” in the traditional sense. All he needs is for the government to implement his economic vision: (1) no tariffs, (2) no minimum wage, and (3) unlimited, unrestricted immigration.

    #OpenBorders
    #(EvenDuringAPandemic)

    1. MOST L*BERTARIAN PRESIDENT EVAH!

      1. Bailouts suck, but rest assured that Biden would be worse. Like sending pallets of cash to China to offset coronavirus racism worse.

    2. Fantastic work-from-home opportunity for everryone… Work for three to eight hrs a day and start getting paid in the range of 7,000-14,000 dollars a month…Weekly payments……https://xurl.es/gz4go

  2. Socialism from a Republican administration, gotta love it!

    1. That Republican administration in congress?

      1. The Department of the Treasury reports through the Executive branch dude. Not that Democrats won’t be thrilled to spend the money.

      2. Yeah, no! By the way will your company be able to keep production of my dogs favorite dog food?

    2. TARP passed you by?

    3. The administration wanted a payroll tax cut, which would have been far more reasonable. But they took what they could get.

      1. Lol. Defending Trump’s socialism.

      2. What good is a payroll tax cut if your laidoff. Better to fund unemployment compensation and loans to small businesses.

    4. Actually it seems to me the article is propaganda, “Perhaps the most controversial measure of the GOP-led proposal will be the $50 billion bailout of the airline industry. In order to qualify for loans, carriers would need to promise to limit executive compensation until the money is repaid.”

      SO – Exactly how related is “qualify for loans” to “bailout”…. And since when did we start pretending a “bailout” had to be repaid?

      1. Loans are still a bailout and still theft. Government has no moral right to lend MY money to someone else, and you assume the loans will be paid back. What if they aren’t?

        1. Loans are neither a bailout nor theft.

          1. You are assuming the loans will be repaid. But if that was assured, they could easily get a loan from banks, or issue bonds. This is an unsecured loan to companies in an industry that has frequent bankruptcies. If the interest rate was proportional to the risk, the airlines could not afford them.

            So, depending on how this works out, the government is either using my tax money to give the airlines a gift of a loan at far below market rates, or ultimately giving away my money to be squandered. Either way they made a gift using my money – and that’s theft.

            1. Well yes, I am assuming the loans will be repaid. Doesn’t anyone making a loan expect the loan to be repaid? C’mon.

              A loan is made with the expectation of being repaid.
              A gift is made with no expectation of being repaid.

              Not seeing theft here. I do think it will work out in the end. As a country, we need to pull together, bear down, and get through this.

              1. And what if it isn’t repaid, derp?

          2. You are a libtard if that is what you truly believe. Like welfare is theft, loaning my money without my permission is theft, and you are a moron to assume they will be paid off. That ain’t free markets.

          3. A loan which is made using funds taken from others against their will through the use of violence is, definitionally, theft.

            I know, language is hard…but words don’t change meanings just because you want something, and it would make your argument easier to make.

    5. The Financial Action Task Force, as in asset forfeiture, is now presided since late 1919 by a communist China official. What could possibly go wrong with them dictating banking and securities regulations again?

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  4. I guess if their gonna spend at least the taxpayers will get some cash. I’ll take it and put it in saving , well, minus a good bottle of single malt. Bty, anyone else here try Russel’s Reserve 10 year old?? A friend gave me a bottle the other day. I tried a little yesterday after work and thought is was quite good. I usually by Maker’s Mark.

    1. I haven’t, but Bushmills 16 is a perfect price/performance whisky, imo.

      1. Thanks. I’ll try that.

    2. My most recent favorite is Basil Hayden, bourbon. Smooth.

  5. OK, exactly how does the money get out? Are the feds going to admit they have access to every bank account in the country? And what about the poor homeless and illegal? Will the Treasury department get Amazon to go throw cash out the window near all homeless camps?
    I call bullshit.
    Employees out of a job have unemployment.
    Prudent businesses have insurance.
    Politicians have a lust for power.

    1. It’s an election year. Something must be done.

    2. We’ll see the money in a few months, after it won’t do any good anyway.

    3. thats funny. amazon throwing cash out…thanks for the chuckle

  6. I plan to spend it. And I don’t plan to cower in my home.

    But a trillion bailout is peanuts to what they have promised through the end of the century. The real hard times are not here and won’t be for a while. There is no will to deal with that right now so let the good times roll for a while longer.

    1. I hear vacation cruises and air tickets are cheap now.

  7. If the coronavirus stimulus is designed to mitigate the economic effects of the coronavirus, what’s going to mitigate the economic effects of the coronavirus stimulus? It’s turtles all the way down, isn’t it?

    1. Turtles? No, dear friend, it’s virus-laden bats, clearly – as in, our dear leaders are batshit insane.

  8. Has MSNBC weighed in on how many million each individual will receive from this?

    1. I would just like to know if the check comes with a wheel barrel to haul our billion brazillion dollars to the store for a loaf of bread?

      1. to use the bread as tp I assume

        1. I prefer tortillas

      2. LOL…. BEST comment lc…. A reference to the very-real historical pictures of ALL those other failed GOV’s that thought they’d print their way out of a problem.

      3. We might be eating the cash itself before this is over.

    2. better question, has anyone checked to see how many billions it’s gonna take to pass out the money in the first place?

      1. Why do you think they call it “helicopter money”?

  9. Who else is tearing that stupid treasury check up?

    I just haven’t decided whether I am paying for a stamp to send the torn up check back to the Treasury or just throw that worthless piece of paper in a fire pit and be done with it.

    Cutting payroll taxes for a Month or Quarter would have made sense and would not have been welfare.

    1. Yes! Tear it up and post a pic please. You have my full support.

    2. Just reusable grocery bags.

    3. They taxed me for that shit, I’m certainly not going to tear it up. I intend to buy another gun with it.

      1. Just as soon as the gun stores are allowed to re-open?
        Say on the twelfth of never?

    4. Most libertarian president evah!

    5. Cutting payroll taxes does not get money to the people who are out of work.

  10. MARKETS IMPLODING!

    1. “Sell Mortimer Sell”

  11. Since airlines and air travel is the primary vector by which such diseases spread globally, shouldn’t we be happy that economics intervenes, drives some airlines out of business, and makes air travel more expensive and hence less common? (“Environmentalists” can additionally be happy at the reduction in carbon emissions.)

    1. They are going to give our money to the airlines so it will be easier for them to stop people from flying anywhere, duh!

      1. Like paying farmers not to plant.

        1. If those factions can be majority for a day, then maybe come this April Fool’s day, he’ll be king!!

  12. “he package seeks to curb the economic chaos caused by COVID-19.”

    Most of the economic chaos is the result not of covid-19, but rather is the result of government overreaction to covid-19.

    1. ^Winner winner, chicken dinner!

    2. You must be a Klingon.

    3. “Most of the economic chaos is the result not of covid-19, but rather is the result of government overreaction to covid-19.”

      If the disease were anywhere close to as dangerous as the hysteric response, I’d be worried about *it*.

  13. Lemme see here. You got yourself a trillion dollar deficit. You’re about to grant another trillion in give outs. It will cost several hundred billion to administer the trillion gifts. Tax revenues will plummet this year and for at least two more years. Failing small businesses will take the unemployed to record numbers, threatening to take a serious recession to a depression. I’m beginning to think the proper response would have been to do nothing. Take the quarter million deaths and come out the other side with a largely immune populace.

    1. Another winner!

    2. Yep. Recommend self isolation for anyone over 80 or with health issues, and use local HHS, LEO and even Natl Guard if needed to provide assistance for those self-isolated. The rest of us should just take our chances with a bad chest cold.
      Of course that was before we were all panicking about something about as deadly as the flu to most people.

    3. You have a point. In most cases, it’s better to just take your beating and be done with it instead of burning everything else before you take your beating. And what happens next year when China releases COVID-20? It’s deja vu all over again, but with nothing else to burn.

      If politicians can’t help themselves spending that money, better to keep people working and put that money into reclaiming manufacturing in the US. Bring medication and microchips home, suck it up for a couple of years, and tell China they fucked up just one too many times to keep doing business with. Then fuck sending wheat to those bastards. Yes, the continent will stink for about a year as the bodies rot and they will be begging Kim Jong-un for rice and jobs, but hell, maybe there will be enough of them left to turn Jade Spring Hill into a burning pile of rubble.

      1. It is time to divorce China.

        1. Too late. The marketplace is global. You can accept that and thrive, or you can choose not to participate and watch as the rest of the world passes you by.

      2. “…And what happens next year when China releases COVID-20?…”

        Keep the shiny side of the aluminum foil out.

        1. Trump will no longer be your daddy by then so lets not worry about that just yet.

        2. By the way, don’t you know that Trump created COVID-19? This is him trying to create another problem to show the Magalomaniacs how easily he can fix it. Talk about your all time backfires!

      3. but with nothing else to burn.

        I mean, we didn’t have anything to burn to begin with. The government is already just printing money. Trillion dollar deficits are so last year. Now we need to begin talking about, year-over-year, what percentage of the entire national debt is just this year’s spending for this year’s (or month’s! or day’s!) crisis. Hyperinflation can’t be far away at this point.

    4. Are you volunteering to be one of the deaths?

      1. Oh, how cogent!
        If we save just one life, right? I mean, who cares about the economy so long as we can point to just one life we saved!
        Need a copy of chicken little?

    5. And if we end up with Biden in the aftermath, we will never recover.

  14. So basically, what you’re telling me is that the federal government is about to assume a portion of my outstanding credit-card debt. On the one hand, socializing my credit-card obligations violates my libertarian conscience. On the other hand, the federal government will pay a far lower interest rate (by one, if not two orders of magnitude) on my debt than I will, so perhaps there will be a net benefit to the economy.

  15. …distributed to Americans in two payments, with the amount tiered based on income and family size, disbursed on April 8 and May 16.

    WHERE MY MONEY BITCH

    1. The irony is that most Americans will probably be back at work by that time. Even the medical schools in this area, which have completely lost their shit over this crisis, are projected to be back in operation by May 1.

      1. By then we will have burned the wheatfields and leveled the buildings in some societal version of sackcloth and ashes.

        1. Take my love, take my land
          Take me where I cannot stand
          I don’t care, I’m still free
          You can’t take the sky from me
          Take me out to the black
          Tell them I ain’t coming back
          Burn the land and boil the sea
          You can’t take the sky from me

          There’s no place I can be
          Since I’ve found Serenity
          But you can’t take the sky from me

          1. Buy the sky and sell the sky
            And tell the sky, and tell the sky
            Don’t fall on me (what is it up in the air for)
            Fall on me (if it’s there for long)
            Fall on me (it’s over, it’s over me)

            There’s the progress
            We have found a way to talk around the problem
            Building towered
            Foresight isn’t anything at all

            Buy the sky and sell the sky
            And bleed the sky and tell the sky
            Don’t fall on me (what is it up in the air for)
            Fall on me (if it’s there for long)
            Fall on me (it’s over, it’s over me)
            Don’t fall on me
            (Well I would keep it above but then it wouldn’t be sky any more)
            (So if I send it to you you’ve got to promise to keep it home)

            Buy the sky and sell the sky
            And lift your arms up to the sky
            And ask the sky, and ask the sky
            Don’t fall on me (what is it up in the air for)
            Fall on me (if it’s there for long)
            Fall on me (it’s over, it’s over me) )

          2. Hand washing songs.

            My current one.

            Are you gonna take me home tonight?
            Ah, down beside that red firelight
            Are you gonna let it all hang out?
            Fat bottomed girls
            You make the rockin’ world go ’round
            Hey I was just a skinny lad
            Never knew no good from bad
            But I knew life before I left my nursery, huh
            Left alone with big fat Fanny
            She was such a naughty nanny
            Heap big woman, you made a bad boy out of me
            Hey hey!
            I’ve been singing with my band
            Across the wire, across the land
            I seen every blue eyed floozy on the way, hey
            But their beauty and their style
            Went kind of smooth after a while
            Take me to them dirty ladies every time
            C’mon!
            Oh, won’t you take me home tonight?
            Oh, down beside your red firelight
            Oh, and you give it all you got
            Fat bottomed girls, you make the rockin’ world go ’round

    2. I’m about to adopt so many orphans

    3. what if there’s a cure April 20th?

  16. In other news, Congress announced their place to raise inflation 5% for the foreseeable future.

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  18. Surgical masks are worthless, n95 masks are not.

    1. Assuming, of course, that anyone actually uses them correctly.

      Spoiler Alert: Your average person has no idea how to use them properly, nor are they probably willing to go through the hassle of doing so.

  19. Never let a crisis go to waste.

  20. rand paul suggested a system based on unemployment insurance system. if the theory is that folks are being tossed from work and need their income then i say he has it right. trump is such a dope that he cannot think it through and needs to be the big man and it appears he is as ready as pelosi and biden and krugman to plunge us deeper into debt. this should surprise no one. trump is a creature of debt. his empire was built on it and lots of was a bust for his lenders.

    TRUMP WILL GET ROLLED BY PELOSI AND HER WAY MORE CLEVER POLITICAL PALS HERE. THEY WILL USE THIS “CRISIS” TO ERASE STUDENT DEBT, EXPAND WELFARE STATE AND HE WON’T EVEN KNOW THEY ARE BUTTFUCKING HIM

  21. Bush listened to the Financial Action Task Force and unleashed faith-based asset forfeiture against Demon Plant Leaf grow houses. Mortgage-backed securities tanked as money fled banks, brokerages that were no longer collecting payments. Crash! Bailouts! Now that same FATF presided by communist chinaman Xiangmin Liu, held FATF Week in Paris Feb 16-21, and markets quit working again! Is this because of additional coercive meddling in the financial system of a flu virus that kills a tiny percentage of the auto fatality rate?

  22. To be fair, the death of libertarianism was always going to result from some form of mass death.

  23. Which means $2 trillion is probably needed.

    This is bananas.

    For. The. FLU.

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  25. The $1 trillion stimulus package is already paid for.

    How?

    You know that $1.07 trillion in US Government paper that the Chinese are holding (according to The Balance.com)? Well, if that paper is cancelled, walla, it’s like found money.

    Trump isn’t calling this “The Chinese Virus” fer nuttin’ ya know.

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  27. This is the point where libertarian ‘theory’ crashes and burns when gobsmacked by reality. The bill was a reasonable legislative effort passed by the Congress to address a national emergency. This qualifies as an emergency.

    Memo to the airlines: Federal money comes with strings attached. The strings are transparent and known. You may choose to take the money with the strings, or go under. Your choice. Choose wisely.

  28. Congress needs to be careful in passing out money. This problem will likely continue for some time. Better to focus money where it is needed and that is with those out of work and small businesses. Best thing for now is unemployment compensation and zero interest loans for small businesses. AOC is correct that airlines and any large business get money only with strict limits on how it is used. Finally no loans to cruise lines. Sorry but their time may have past, no point saving businesses already dead.

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  31. Round 2 of this corporate bailout will occur later this year

    when they report earnings and get the double whammy of declining revenues AND exploding employee health plan costs.

    Covid19 is the end of employer-paid health care for most people

  32. The nationalists and the socialists unfortunately agree on too much rather than too little, with the fallacy of government stimulus being the example of the day.

    Government can’t create.
    Government can only redistribute or destroy.
    And government redistribution entails much destruction.
    And government destruction entails much redistribution.

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