Coronavirus

Would Gov. Cuomo Rather Have No Businesses in New York Than Businesses That Employ Fewer People?

His proposed law would require that corporations return bailout funds if they don't rehire the same number of employees.

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New York Gov. Andrew Cuomo has a plan to curtail corporate bailouts, and he's taking it to Washington, D.C. He has proposed the "Americans First Law," which would require that corporations return government money if they do not restore their workforce to pre-coronavirus levels. New York's congressional delegation will introduce the bill in the U.S. House of Representatives.

"No handouts to greedy corporations, no political pork, and no partisanship," Cuomo said at a Tuesday press conference.

"I understand businesses need to recover, this doesn't have to be a giveaway to the rich millionaires who are doing just fine anyway, and it doesn't have to be a giveaway to big business," he noted. "It shouldn't be that another episode in history where somehow the rich figure out a way to get more assistance when it is supposed to be about helping average Americans."

Cuomo said his concerns were informed by his time as New York Attorney General during the 2008 financial crisis, when the federal government rescued Wall Street with an aid package that partially bolstered executive compensation. But the governor's suggestion that corporations will be able to magically return to business as usual after months of being on economic life support makes little sense.

For instance, lawmakers attached similar conditions to $25 billion in federal bailout money for the airline industry. One such requirement stipulated that airlines keep employees hired through September 30, by which time many Americans believed life would be somewhat back to normal. But United Airlines has since announced it will convert 15,000 employees from full-time to part-time and begin layoffs on October 1. One analyst anticipates that 20 to 30 percent of airline jobs will disappear over the next year as major American carriers seek to reduce costs in response to a prolonged stretch of historically low air travel. The CARES Act also requires airlines to continue flying near-empty planes at a huge financial loss, causing carriers to burn through money that could soften those planned layoffs in the fall.

Nevertheless, Sen. Josh Hawley (R–Mo.) took to Twitter to speak to a manager after he found out about United's actions. "I'm at the airport, flying back to DC, and multiple United employees have told me the company is cutting their hours, pay & benefits immediately," he said. "This is AFTER United took billions in bailout money that was earmarked for workers."

United, like Delta and JetBlue, was likely to massively cut payroll regardless of whether it received a bailout, but it was unlikely they were ever going to close up shop completely. Large corporations can restructure through bankruptcy, while smaller businesses have less leverage with their creditors and a harder time bouncing back from economic slumps. (This is one reason why Rep. Justin Amash (L-Mich.) and hundreds of economists opposed the corporate bailouts in the CARES Act.)

While Cuomo is right to bemoan providing further subsidies to the country's largest companies and their wealthy investors, requiring all firms that received assistance to operate at a loss (or else) is simply another form of economic denialism.

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  1. But Cuomo’s suggestion that corporations will be able to magically return to business as usual after months of being on economic life support makes little sense.

    You’re reading this wrong. This is Cuomo trying to get something passed for the appearance of ‘helping’ while effectively doing nothing at all.

    I mean, if it works the government won’t spend any money right? Since it’s impossible that business will be able to ‘comply’ with this?

    Of course, this assumes there is any rational way to get that money back after the government flushes it down the toilet which historically hasn’t worked out super well.

    1. Why is socialism always great when free tax payer moneys is given to huge corporations, who shelter their profits in offshore accounts so as not to pay taxes to begin with, but an evil idea when you have to save the common worker?

  2. Cuomo has handled the #TrumpVirus better than literally any other governor. He deserves a major role in the Biden Administration. (Not VP, of course, because that has to be a woman.)

    1. Cuomo should be jailed and shot being NYC area was ground zero for COVERT-19 and he didn’t stop travel out of that area and it has been proven that NYers went all over the country infecting most of the country

  3. >>Cuomo’s suggestion … makes little sense.

    dude’s in over his head and he can’t ask pops for help. please put him up against Biden and make that whole mess even worse.

  4. Of course, he just forgot to state that no new government rule or regulation will in any way reduce the number of customers a business can admit at any one time, and that there will be no silly-ass rules about masks, health checks, little tape Xs on the floor and any of the other bullshit so popular now. Right?

  5. General rule of thumb for American business; get out of NY, CA, NJ, WA, OR, DC, HI, and all other ‘people’s republics’.

    1. When there is demand, there is business. How patriotic are these big businesses who have sent all production to the commies in China to the point they can’t even supply simple face masks and now demand to be bailed out, but not the common worker? Go do your homework. GE makes billions, pays no taxes, gets millions in tax write offs and grants (free tax payer moneys, socialism) and send Americans jobs to the commies in China to boot. Who needs these guys? Jeff Bezos got billions in tax deferments for low paid warehouse jobs? Glad New York didn’t want him. Boeing, a very successfful company that was making billions, didn’t value their employees who built the planes at all by not sharing the wealth, but gave it to investors instead and set out to bust the union, by having others make parts and offshoring to the commies in China. The quality got so bad and It got to the point were they hired totally unqualified, low paid workers to built planes. One assembly foremen when asked if he would fly in one of those planes, stated no way! When something goes wrong, you can’t pull over an airplane like you pull over a bus. Boeing’s reckless and cavalier attitude toward quality finally culminated with the Max 8, killing hundreds of people. The CEO should have been locked up. Who needs those kinds of businesses, let the other chump states feed these vultures with free grants.

    2. Exactly…and don’t spend a dime there either…fuck those states!

  6. Yes, thank god that after the Spanish Flu the feds stepped in to save the steam ship companies and the coal mines.

    1. Well, there was plenty of support at the time for nationalizing the railroads which had been run into the ground by government seizure for WWI. Classic “first we break your legs, then we give you crutches to show how much we care about you.”

  7. Most politicians have never held any kind of real job. Bernie is a classic example — nothing but politician. Lizzie is almost as bad, since all she’s ever done is politician or report-writer for hire by politician or professor.

    They simply do not understand business, economics, finance, jobs, or anything at all that concerns real life. Combine that with Pharaoh’s motto — “So let it be written, so let it be done” — and everything they do suddenly makes sense. $3T? No big deal, just vote it. Too many people complaining about rent? Pass a law for rent control. On and on it goes, complete lack of comprehension of consequences, predicted or not.

    1. That is pretty much the explanation. Politicians are experts on getting votes. Knowledge of economics, management, etc. would be nice to have, but are not required for success in that field.

    2. Lizzie has been a lawyer and a professor – two professions that do not involve designing, building, problem solving, managing, or any of the things that give us normal folk insight into how Complex Systems such as human society work in real life

  8. Well it came out of Cuomo’s mouth. It’s not worth repeating. He’s not his father, but at least he’s not his brother.

    1. But is he better than Greta Thunberg?

      1. No. Thunberg’s better, because she can’t run for President.

        1. How dare you!

      2. You have taken away my childhood!

  9. Tell Cuomo his authority ends at the NY state line and send him home.

  10. Good thing the virus was never here and is disappearing anyway. Dear Leader, I love you so much.

  11. Where is LoveCon1984?

  12. Better question. Why is Cuomo getting such high media approval despite being an utter disaster with the highest death rates? Florida has a higher population of elderly, yet far fewer deaths. Yet media trashes that governor.

    1. They need him to be popular in case they have to pull the rug out from under Biden. Who else do they have?

      1. I really think if this Russia collusion case gets serious legs, Michelle Obama’ll run in an attempt to keep her and Barry’s asses out of jail. I’ve gone over a proposed set of logistics before about how to accomplish that. Bernie will be her VP.

        As for Cuomo, he and the rest of the Blue State spendthrifts—Whitmer’s just an evil, power-mad bitch—need their states to be fucked up economically if they want to make a creditable case for Bailout #N. Part of that Bailout will go to pay down their ludricious public pension shortfalls.

        In the words of that sage taken from us all too soon, Sam Kinison, to the cameraman filming a starving child during the Ethiopian famine “NOOOOO! Don’t feed him yet! He’s got to look hungry!”

        The Ethiopian famine was due to intentional governmental action too. Mengistu deserved Khadafy’s fate. Instead, he sits in exile in Zimbabwe, and will no doubt die peacefully in bed, like Idi Amin, and so many other vicious dictators.

    2. 1. He is a Democrat.
      2. NYC is where much of the media lives, and they are very provincial.
      3. They worship arbitrary power (if #1 is satisfied).

      1. Yep. Cuomo has the magic (D) behind his name, so he’s doing a great job despite the fact that his state, with 6% of the U.S. population, has 26% of deaths nationally.

    3. Republican/Democrat…Conservative/Liberal. We all know who the lame stream media likes.

  13. I guess tomorrow is the day the writers will address the fallout from the revelation of who was behind the Great Unmasking(s)? Not every day the leaving President decides to spearhead using the national security and intelligence apparatus to wiretap the incoming President’s people.

    Nixon is probably raging in whatever afterlife he’s in, agog that he got thrown out of office, while Obama got deified.

  14. Just cut out the middle man and give workers money directly: UBI.

    1. Get a job, hippie.

  15. “…this doesn’t have to be a giveaway to the rich millionaires…”

    Just to the poor millionaires?

  16. Cuomo cannot believe the money the government has given these corporations may not cover the cost of paying employees as if the airline was running at full capacity. I can believe that Cuomo and other politicians are that dense.

  17. He has proposed the “Americans First Law,” which would require that corporations return government money if they do not restore their workforce to pre-coronavirus levels

    So it’s the corporations’ fault if employees don’t want their jobs back because they want to keep their unemployment benefits?

  18. Cuomo: *Shoots you in the leg*

    Cuomo: Ok, here are all the hoops you’re going to need to jump through to get a tourniquet. Wouldn’t want anyone to bleed out, would we?

  19. Should anyone be surprised here if government has strings with its money? One thing that COVID has demonstrated is the absolute ability of big government to engage is overtly destructive behavior, and an argument for government to shrink its scope so that is doesn’t do so.

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