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How large corporations are exploiting this crisis


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It's morally repulsive how corporations are exploiting this crisis. Workers will suffer
By Robert Reich   www.theguardian.com    Sun 22 Mar 2020 09.27 EDTLast modified on Mon 23 Mar 2020 12.03 EDT
 

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In normal times, corporations get special favors from Washington in exchange for generous campaign contributions, and no one bats an eye. Recall the Trump tax cut, which delivered $1.9tn to big corporations and the wealthy.

 

The coronavirus should have altered business as usual. But last week’s Senate Republican relief package, giving airlines $58bn and billions more to other industries, is pure Burring.

The Senate majority leader, Mitch McConnell, tried lamely to distinguish it from the notorious bank bailouts of 2008. “We are not talking about a taxpayer-funded cushion for companies that made mistakes. We are talking about loans, which must be repaid, for American employers whom the government itself is temporarily crushing for the sake of public health.”

 

But the airlines are big enough to get their own loans from banks at rock-bottom interest rates. Their planes and landing slots are more than adequate collateral.

Why do airlines deserve to be bailed out? Over the last decade they spent 96%of their free cashflow, including billions in tax savings from the Trump tax cut, to buy back shares of their own stock. This boosted executive bonuses and pleased wealthy investors but did nothing to strengthen the airlines for the long term. Meanwhile, the four biggest carriers gained so much market power they jacked up prices on popular routes and slashed services (remember legroom and free bag checks?).  LINK

 

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Good article by Robert Reich.  I like the way Reich explains things—although I don't necessarily agree with all of his political views.  There is an excellent documentary by Reich on Netflix right now.  

 

 

 

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Honestly wtf would we ever bail out cruise lines? 

I understand considering airlines, but no one NEEDS to go on a cruise. It's not a way to get from point A to B. It's a way to relax and party.

 

Give all that $ to independent/local restaurant and their employees/former employees over the next few months.

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53 minutes ago, Danny Bateman said:

I really like the part where we're going to bail out the cruiselines who are headquarted in other countries so they can pay lower taxes.

That part really pisses me off. 

50 minutes ago, Moiraine said:

Honestly wtf would we ever bail out cruise lines? 

I understand considering airlines, but no one NEEDS to go on a cruise. It's not a way to get from point A to B. It's a way to relax and party.

 

Give all that $ to independent/local restaurant and their employees/former employees over the next few months.

Agree. 

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  • 2 months later...

I didn't see a better thread, so I'll put this here:

 

 Local News Stations Run Propaganda Segment Scripted and Produced by Amazon

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The segment, which was aired by at least 11 local TV stations, and which was introduced with a script written by Amazon and recited verbatim by news anchors, presents a fawning picture of Amazon, which has struggled to deliver essential items during the pandemic, support the sellers that rely on its platform, and provide its workers with the necessary protective equipment. Each anchor introduces the script then throws to an Amazon-produced look "inside" an Amazon fulfillment center, which is narrated by Amazon spokesperson Todd Walker

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Each station introduced Walker as though he were one of their own reporters. He is, in fact, a "PR manager" at Amazon, according to his LinkedIn page. Walker used to be a broadcast journalist, according to his personal website and a sizzle reel he produced for his site.

 

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Jim Cramer: The pandemic led to ‘one of the greatest wealth transfers in history’

 

https://www.cnbc.com/2020/06/04/cramer-the-pandemic-led-to-a-great-wealth-transfer.html

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The coronavirus pandemic and corresponding lockdown made way for “one of the greatest wealth transfers in history,” CNBC’s Jim Cramer said Thursday.

The stock market is rising as big business rebounds from state-ordered stoppage of nonessential activity, while small businesses drop like flies, the “Mad Money” host said.

 

“The bigger the business, the more it moves the major averages, and that matters because this is the first recession where big business … is coming through virtually unscathed, if not going for the gold,” he added.

The comments come after Wall Street took a breather during a mixed day of trading in the midst of hopes of a quick recovery from the pandemic. The Dow Jones Industrial Average ticked up almost 12 points to 26,281.82 during the session. The S&P 500 and Nasdaq Composite both finished the day in the red by less than 1%.

Investors reacted to worse-than-predicted economic data ahead of the May jobs report Friday. The Labor Department reported on Thursday that new jobless claims the past week came in at 1.877 million, while experts expected a read of 1.775 million claims.

Despite the ongoing economic woes, the S&P index of 500 large-cap companies, which is considered a benchmark for the stock market, is within striking distance of its levels from the start of the trading year. Since bottoming near 2,191 in March, the index is up about 42%.

The tech-heavy Nasdaq 100 has recovered all of its losses from the coronavirus meltdown and set a new high on Thursday. Many investors are betting on a V-shaped economic recovery, Cramer said.

 

“I think we’re looking at a V-shaped recovery in the stock market, and that has almost nothing to do with a V-shaped recovery in the economy,” he said.

In order to help small businesses make it to the other side of the pandemic, the federal government needs to pass another stimulus package, given the social distancing mandates that remain in place, he added. The American Bankruptcy Institute said Thursday that U.S. Chapter 11 bankruptcies in May ballooned by 48% compared to a year ago.

“That’s that pesky real world asserting itself, but the only big bankruptcy we’ve seen int he stock market is Hertz,” Cramer said.

Cramer said it still only scratches the surface of what impact the halt in global economic activity will have on the country.

 

 

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