Many big private companies are demanding loans and grants from the government to save them from the disastrous impact of the Coronavirus.
Many governments are responding with huge emergency policies of loans, guarantees, and grants.
Many of these companies shareholders have benefited from huge dividend payments, share buybacks and in the case of senior staff and lucky board members have received very generous remuneration and share options. These same people can and do benefit from arranging their matters to pay the minimum of taxes on their income, something that ordinary folk are not able to do.
Now these people are asking governments to support them when they have already drained the companies cash into their pockets.
Naturally all this talk about government support does not always mention that the government’s money comes from ordinary taxpayers, 90% of whom never get to see any of the above benefits!
Many ordinary folk have now lost their jobs and are on unemployment benefits or lost their small business, and cannot meet the mortgage payments or their rent.
It is very nice to have big company benefits with powerful lobbies and plenty of cash in the bank – life for these people is not fraught with fear and depression that many ordinary folk are now facing,
Much needs to be done to help our populations through this health crisis and support for our economy is very necessary but it must be done in the right way.
We are also fighting Climate Change, a severe challenge that cannot be postponed for 12 months. Giving support to the worst offenders without conditions – oil companies, banks funding fossil fuels and airlines, etc. – needs attention…
Handing our money to big companies without quid pro quo is wrong and now we are seeing plenty of examples of this happening on our own doorsteps.
Photo; Wikipedia Commons from the film “Other People’s Money” made in 1916 by Director: William Parke Writer: Lloyd Lonergan (scenario) – The story opens with the broker, who, as the head of the company, was promising quick returns on investments, suddenly disappears. Another “get-rich-quick” bubble had exploded.