US Airlines Ask For Bailout Due To Coronavirus, Experts Step In To Protect Taxpayer Money
We are starting to see major implications of the behemoth we call COVID-19. Besides the hundreds of thousands physically affected by the coronavirus, there are also whole industries suffering great losses due to the conservative lifestyle imposed by it.
Many governments are preparing economic stimulation and bailout plans, with one particular example making headlines. A number of US airlines are demanding bailouts measured at billions of dollars from the US government, and people aren’t happy about the fact that the government is actually considering this.
A number of US airlines found “the best” time to ask for billions of dollars in government bailouts
Image credits: Whity (not actual photo)
Robert Reich, Former United States Secretary of Labor, explained that airlines do not deserve the bailout currently planned at $50 billion. He claims that in the last 10 years, the industry’s largest players—Delta Airlines, United Airlines, Southwest, and others—collectively spent 96% of their cash flows buying back their own stock. According to Reich, this was done to increase executive bonuses, artificially making themselves look good along the way.
Needless to say, a vast number of citizens and experts didn’t like this idea amid the COVID-19 crisis
Image credits: RBReich
Now, issuing bailouts to businesses isn’t a bad idea per se—it can be beneficial in keeping the economy up and running through tough times. However, it is the context that is pushing many to protest such a move, especially given that this is taxpayer money and it could be used to greater benefit if spent elsewhere.
U.S. Representative A. O. Cortez, Former Labor Secretary R. Reich and others took to Twitter in protest
Image credits: AOC
A few days before Reich’s tweet, Alexandria Ocasio-Cortez, New York’s US Representative, made the same point. She further explained that there should be added conditions prohibiting airline companies from buying back their stock if they receive a government bailout.
Reich continued that the bailout is essentially taxpayer money. Despite it being used to keep major companies (and hence the economy) afloat during the pandemic, people wouldn’t really trust airlines with this money given their track record of stock buybacks, tax dodging, and worker shafting over the years.
Reich stated that it is taxpayer money and it “should be used to bail out people, not corporations”
Image credits: RBReich
Image credits: RBReich
Moreover, he says that companies like airlines, hotels, and cruise ships should not be bailed out as they have a number of other options to finance their essential operations, including borrowing money at extremely low rates.
Reich suggests using the bailout to “bail out people, not corporations.” This should come in the form of helping workers who need income and paying medical bills, as well as helping hospital workers who are in dire need of protective gear.
Besides, Reich explained that airlines can use other sources of income—borrowing at low rates
Image credits: RBReich
Image credits: RBReich
Association of Flight Attendants President Sara Nelson also went to Twitter in support of this idea. She said that since airlines must continue with keeping up payroll and avoiding layoffs so as to make the aviation industry’s return to service smooth, she suggests payroll subsidies to be paid out directly to the workers. This would include flight attendants, pilots, airline ground workers, airline caterers, airport cleaners, greeters, security screeners, wheelchair attendants, and other airport service workers.
Association of Flight Attendants President Sara Nelson attempted to find some middle ground
Image credits: FlyingWithSara
Image credits: FlyingWithSara
This, of course, has to be done with significant conditions that would help workers and keep planes flying without allowing upper management and executives to take advantage. Besides this, she noted that planes do not have to sit idle in airports—they can be used to facilitate essential logistics during the pandemic to mitigate the costs.
Her idea was to let the government help the workers without letting the high ups take advantage
Image credits: FlyingWithSara
Image credits: FlyingWithSara
Debates are still ongoing as government officials are divided over this issue, while many experts are advising against the idea of bailing out airlines since there are bigger priorities. What are your thoughts on the issue? Let us know in the comments below!
Here are some opinions on the topic from the rest of the internet
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100% worker protections, all the way. Corporate profits aren't the backbone of the economy, workers are. And since most Americans work for small businesses (privately owned businesses that employ <50 people), small businesses need the bailouts. I say small businesses be given grants to cover the shutdown on the condition that nobody gets laid off (or anyone laid off and collecting unemployment gets rehired upon reopening). Airlines need to be nationalized, or at least revert to public utility like they were pre-Carter.
Man, f**k cruise lines. They deliberately register ships under foreign flags to avoid paying taxes, treat their employees and customers like s**t, and they have the unmitigated GALL to ask for taxpayer bailouts while most of us are out of work and terrified for our future. No, no, and f*****g NO.
Protect the PEOPLE. And, despite "Citizens United"... CORPORATIONS ARE NOT PEOPLE. Current form of the bailout bill, per my reading of it and confirmation from a US Senator? $350 M "$350 million to be available to local authorities when the virus is detected." In short, a buck a person in the US. Yep. A whole $500 M "for masks, medication, protective equipment, and other much-needed medical supplies that can be distributed directly to hospitals and local health care providers." Does any of that soundl ike it adds up to trillion or even billions? NO. Infer from there... (Source: Sen Mark Warner office, US Senator Virginia)
Actually...in the eyes of the American Justice system...Corporations ARE people. As a matter of fact, they have more rights than you and me. That's some crazy s**t. But that's how the entire American system is built. It's built with the corporation in mind. You cannot change this unless you change the entire culture and laws. And that's never going to happen. They will get bailed out.
Load More Replies...Give the money to the workers. It will go right back into the economy. It's a twofer - the employees get help & the economy gets a boost. Seems pretty simple. Money doesn't trickle own, but it does gush up. If you give $1 million to a billionaire, it'll probably sit in an overseas bank. If you give $1 to a million people, it will go right back into the economy.
Don't forget taxes. The workers money feed all. They will give you money and you will give them back one way or another. It's like moving the money from one of their pocket to another of their pockets. They know they will get most of them back, but why not give them? Because a tiny amount you will actually use on yourself to not starve. They want to take all and give nothing back.
Load More Replies...Finally!! People who understand. Bailouts are bullsh*t. Please call you Senators. Call your Congresspeople. Email. Tweet at them. Fax them. Don't just rail on the internet. Let the people you elected know where you stand. They are voting on a bill now, but there will be more to come. #NoBailouts
Well, I', unemployed and homeless but also a full-time student getting my Bachelor's so I can get a decent job. If there is anything given to the people, I'm pretty sure I won't get anything.
Corporations which makes millions per hour has no savings to last a week, but it's expected people who work for 8$ per hour to have savings to support themsleves for an year. Srsly, are you so bad at math? When a billioneer loses a penny in profit he cries he must cut loses, this means your salary. He doesn't cut his caviar diet or lowers his billions of bonuses per year, he cuts your last dimes. They live on your taxes and hard work to achieve bigger profit, but does your salary go up? Do you receive any social benefits? Their bonuses goes up. No matter how the profit grows, your salary is always the same, no benefits for you, they even go lower. Why do you care for their never ending lust for growth? Have you ever heard a billioneer to say he earns enough to sustain the desired lifestyle. He doesn't understand what enough means, he only knows the word more. The more they receive the more they want.
The "president" said he will be the oversight authority regarding these loans. He will not answer to Congress or the American people. The bailout money will become his personal slush fund to reward donors. It's time for the lying, thieving, petty, vindictive, philandering, braggadocios sexual predator to shuffle off to Florida to prepare his defense so he'll be ready for trial in New York.
Really cute to see all of you fuckwaads wanting the airlines to go under. You claim to be "for the people." You know what happens when the major airlines go under? HUNDREDS OF THIUSANDS of lost jobs. And then you same retards that were cheering the demise of the airlines will be demanding taxpayer dollars for the unemployed workers that USED TO have airline jobs. Idiots, all of you.
They will fire you now because you don't work and create their profit. When they reopen after the crisis they will need workers again to milk them and they will rehire people. If you lose your profit you start spending your savings, right? You think they don't have tones of money in offshore banks? They do, but those money are not for spending at a crisis, those money are there to pile up. Now they stopped piling up and this is the real crisis for them. Not only they want the amount to not change, they can't accept it to stop growing. They exist to accumulate
Load More Replies...I think that the folks who work for airlines can apply for unemployment just like everyone else. They can get called back to work like everyone else. The airlines themselves should not get one red cent of taxpayer money. We've been there, done that only to have them stick it to us again for charging for everything but air when we fly. If they don't have a back up plan tough hop folks, there are small businesses that need help as well and they are being told to take out loans. So I strongly suggest that the airlines do the same. Freaking prim a donnas thinking we should blow sunshine up their butts every time they get in any trouble.
I will show you a few ways how to make money and also if you are interested i can show you a method I found that has free training to make $500 to $1000 daily just email me at marietyson24@ gmail.com
Woah woah woah America! That is some socialist statements y'all making there. Leaning too far to the left will turn y'all into communists, no? Helping the poor...what kind of nonsense is that. Capitalism is king! Bailouts are 100% meant to save bloated irresponsible Corporations. Not your 9$/hr a*s. America, F**K YEAH!
To save them from what? Do you think they are starving? They have enough to feed the whole planet. People will starve soon. They want bailout because profit grows slow now. The world may burn, all may die, but if profit go up and up and up - all fine. People can live on salary unchanged. They can't live if profit stops growing, or worse - if it goes down a cent. They exist to accumulate more and more. Capitalism is = never ending growth.
Load More Replies...100% worker protections, all the way. Corporate profits aren't the backbone of the economy, workers are. And since most Americans work for small businesses (privately owned businesses that employ <50 people), small businesses need the bailouts. I say small businesses be given grants to cover the shutdown on the condition that nobody gets laid off (or anyone laid off and collecting unemployment gets rehired upon reopening). Airlines need to be nationalized, or at least revert to public utility like they were pre-Carter.
Man, f**k cruise lines. They deliberately register ships under foreign flags to avoid paying taxes, treat their employees and customers like s**t, and they have the unmitigated GALL to ask for taxpayer bailouts while most of us are out of work and terrified for our future. No, no, and f*****g NO.
Protect the PEOPLE. And, despite "Citizens United"... CORPORATIONS ARE NOT PEOPLE. Current form of the bailout bill, per my reading of it and confirmation from a US Senator? $350 M "$350 million to be available to local authorities when the virus is detected." In short, a buck a person in the US. Yep. A whole $500 M "for masks, medication, protective equipment, and other much-needed medical supplies that can be distributed directly to hospitals and local health care providers." Does any of that soundl ike it adds up to trillion or even billions? NO. Infer from there... (Source: Sen Mark Warner office, US Senator Virginia)
Actually...in the eyes of the American Justice system...Corporations ARE people. As a matter of fact, they have more rights than you and me. That's some crazy s**t. But that's how the entire American system is built. It's built with the corporation in mind. You cannot change this unless you change the entire culture and laws. And that's never going to happen. They will get bailed out.
Load More Replies...Give the money to the workers. It will go right back into the economy. It's a twofer - the employees get help & the economy gets a boost. Seems pretty simple. Money doesn't trickle own, but it does gush up. If you give $1 million to a billionaire, it'll probably sit in an overseas bank. If you give $1 to a million people, it will go right back into the economy.
Don't forget taxes. The workers money feed all. They will give you money and you will give them back one way or another. It's like moving the money from one of their pocket to another of their pockets. They know they will get most of them back, but why not give them? Because a tiny amount you will actually use on yourself to not starve. They want to take all and give nothing back.
Load More Replies...Finally!! People who understand. Bailouts are bullsh*t. Please call you Senators. Call your Congresspeople. Email. Tweet at them. Fax them. Don't just rail on the internet. Let the people you elected know where you stand. They are voting on a bill now, but there will be more to come. #NoBailouts
Well, I', unemployed and homeless but also a full-time student getting my Bachelor's so I can get a decent job. If there is anything given to the people, I'm pretty sure I won't get anything.
Corporations which makes millions per hour has no savings to last a week, but it's expected people who work for 8$ per hour to have savings to support themsleves for an year. Srsly, are you so bad at math? When a billioneer loses a penny in profit he cries he must cut loses, this means your salary. He doesn't cut his caviar diet or lowers his billions of bonuses per year, he cuts your last dimes. They live on your taxes and hard work to achieve bigger profit, but does your salary go up? Do you receive any social benefits? Their bonuses goes up. No matter how the profit grows, your salary is always the same, no benefits for you, they even go lower. Why do you care for their never ending lust for growth? Have you ever heard a billioneer to say he earns enough to sustain the desired lifestyle. He doesn't understand what enough means, he only knows the word more. The more they receive the more they want.
The "president" said he will be the oversight authority regarding these loans. He will not answer to Congress or the American people. The bailout money will become his personal slush fund to reward donors. It's time for the lying, thieving, petty, vindictive, philandering, braggadocios sexual predator to shuffle off to Florida to prepare his defense so he'll be ready for trial in New York.
Really cute to see all of you fuckwaads wanting the airlines to go under. You claim to be "for the people." You know what happens when the major airlines go under? HUNDREDS OF THIUSANDS of lost jobs. And then you same retards that were cheering the demise of the airlines will be demanding taxpayer dollars for the unemployed workers that USED TO have airline jobs. Idiots, all of you.
They will fire you now because you don't work and create their profit. When they reopen after the crisis they will need workers again to milk them and they will rehire people. If you lose your profit you start spending your savings, right? You think they don't have tones of money in offshore banks? They do, but those money are not for spending at a crisis, those money are there to pile up. Now they stopped piling up and this is the real crisis for them. Not only they want the amount to not change, they can't accept it to stop growing. They exist to accumulate
Load More Replies...I think that the folks who work for airlines can apply for unemployment just like everyone else. They can get called back to work like everyone else. The airlines themselves should not get one red cent of taxpayer money. We've been there, done that only to have them stick it to us again for charging for everything but air when we fly. If they don't have a back up plan tough hop folks, there are small businesses that need help as well and they are being told to take out loans. So I strongly suggest that the airlines do the same. Freaking prim a donnas thinking we should blow sunshine up their butts every time they get in any trouble.
I will show you a few ways how to make money and also if you are interested i can show you a method I found that has free training to make $500 to $1000 daily just email me at marietyson24@ gmail.com
Woah woah woah America! That is some socialist statements y'all making there. Leaning too far to the left will turn y'all into communists, no? Helping the poor...what kind of nonsense is that. Capitalism is king! Bailouts are 100% meant to save bloated irresponsible Corporations. Not your 9$/hr a*s. America, F**K YEAH!
To save them from what? Do you think they are starving? They have enough to feed the whole planet. People will starve soon. They want bailout because profit grows slow now. The world may burn, all may die, but if profit go up and up and up - all fine. People can live on salary unchanged. They can't live if profit stops growing, or worse - if it goes down a cent. They exist to accumulate more and more. Capitalism is = never ending growth.
Load More Replies...
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