Quantcast
Connect with us

The Senate corporate bailout package is a ‘robbery in progress,’ warn critics

Published

on

“It’s not a bailout for the coronavirus. It’s a bailout for twelve years of corporate irresponsibility.”

As details of the Senate’s coronavirus stimulus plan slowly trickled in Wednesday, progressive critics characterized the sprawling legislative package as a brazen attempt by both political parties to use trillions of dollars in taxpayer money to bail out and further enrich large corporations while tossing mere crumbs to the most vulnerable.

ADVERTISEMENT

“This is a robbery in progress,” wrote David Dayen, executive editor at The American Prospect. “And it’s not a bailout for the coronavirus. It’s a bailout for twelve years of corporate irresponsibility that made these companies so fragile that a few weeks of disruption would destroy them.”

“We can call it a bailout. But this is so big it is more like Congress is creating a new government for our economy, replacing our old government. And this one doesn’t have any meaningful democratic protections. A pandemic coup.”
—Zephyr Teachout, Fordham Law

While progressives applauded some provisions in the massive package—including the significant expansion of unemployment benefits and protections for airline workers—Dayen said the stimulus package as a whole is an “outrageous betrayal” of the U.S. public and “a rubber-stamp on an unequal system that has brought terrible hardship to the majority of America.”

“The people get a [one-time] $1,200 means-tested payment and a little wage insurance for four months,” Dayen wrote. “Corporations get a transformative amount of play money to sustain their system and wipe out the competition.”

A Senate vote on the stimulus plan is expected as early as Wednesday afternoon, even though the full legislative text has not yet been released to the public.

ADVERTISEMENT

The bill would establish a $500 billion fund designed to bail out large corporations hit hard by the coronavirus crisis. Around $75 billion of the program, which would be controlled by the Trump Treasury Department, is earmarked for the airline industry.

ADVERTISEMENT

But, Dayen wrote, the “enormity of this bailout is being under-reported.”

“The other $425 [billion] helps capitalize a $4.25 trillion, with a T, leveraged lending facility at the Federal Reserve,” Dayen said. “So it’s not a $2 trillion bill, it’s closer to $6 trillion, and $4.3 trillion of it comes in the form of a bazooka aimed at CEOs and shareholders, with almost no conditions attached.”

ADVERTISEMENT

The Washington Post reported Wednesday that the stimulus package also includes a little-noticed $17 billion federal loan program that was inserted largely for the benefit of aerospace giant Boeing.

Dayen appeared on HillTV‘s “The Rising” Wednesday morning to discuss his thoughts on the Senate bill:

While Democratic leaders publicly celebrated the bipartisan deal—with Senate Minority Leader Chuck Schumer (D-N.Y.) calling it “a very good bill“—Democratic aides privately expressed outrage at the legislation’s massive handouts to corporations and relatively paltry benefits for workers.

ADVERTISEMENT

“Temporary survival money for workers, trillions in permanent economic inequality saving a bunch of executives and elites,” one House Democratic aide told the Prospect.

Zephyr Teachout, a professor at the Fordham University School of Law and an anti-corruption expert, tweeted Wednesday that “it is super hard to speak up against this because of the big great things in the bill.”

“But it is irresponsible not to,” Teachout said. “We are talking about something so huge and radical and lacking in oversight that we cannot cheer it on. Truly outrageous.”

ADVERTISEMENT

If the Senate passes the stimulus package Wednesday, House Speaker Nancy Pelosi (D-Calif.) is expected to try to pass the legislation by unanimous consent given that most House lawmakers are out of town and not eager to return to Capitol Hill amid the coronavirus outbreak.

If just one House member objects, the Post reported that “the most likely scenario would be a day-long vote where members would be encouraged to spread out their trips to the floor and not congregate as the vote is taken.”

Rep. Alexandria Ocasio-Cortez (D-N.Y.) voiced concerns about the Senate legislation in an interview Tuesday night with MSNBC‘s Chris Hayes.

ADVERTISEMENT

“If we do not get this right,” said Ocasio-Cortez, “we risk small businesses across the country shutting down, and big businesses experiencing a total pay day with lack of accountability, further consolidating our economy. And that will create a generational issue.”

“We really need to make sure that we get this right to prevent the worst possible outcome,” Ocasio-Cortez added.


Report typos and corrections to: [email protected].
READ COMMENTS - JOIN THE DISCUSSION
Continue Reading

Breaking Banner

WATCH: New Zealand prime minister unfazed as quake hits during an interview

Published

on

A moderate 5.6-magnitude earthquake rattled New Zealand's North Island early Monday but failed to crack Prime Minister Jacinda Ardern's trademark composure as she conducted a live television interview.

The quake struck just off the coast before 8:00 am local time (2000 Sunday GMT) at a depth of about 52 kilometres (32 miles) near Levin, about 90 kilometres north of Wellington, the US Geological Survey said.

St John Ambulance and New Zealand Police both said there were no initial reports of injuries or damage. There was no tsunami warning.

But there was sustained shaking in Wellington, where Ardern was being interviewed on breakfast television from parliament's Beehive building, which is designed to absorb seismic forces by swaying slightly on its foundations.

Continue Reading

Breaking Banner

US farmers are starting to worry as crop prices dip during COVID-19 crisis: ‘It’s kind of glum’

Published

on

Dave Burrier steered his tractor through a field, following a GPS map as he tried to plant as much corn as possible amid the yellow and green rye covering the ground.

Striving to get a massive yield out of his crops in rural Maryland is how Burrier hopes to make it through yet another uncertain year, beset by market disruptions caused by the COVID-19 pandemic and renewed trade tensions between the United States and China.

"We've had so much price erosion that we're basically at below the cost of production. We've got to figure out how to manage and turn a profit," Burrier told AFP.

Continue Reading
 

Breaking Banner

‘It’s the first time I’ve played golf in almost 3 months’: Trump makes excuses for golfing during coronavirus pandemic

Published

on

President Donald Trump was blasted on Sunday for playing golf during the coronavirus pandemic, a dramatic economic recession and after proclaiming churches "essential."

Instead of joining his voters sitting in the pews, Trump went for the links, which drew criticisms for the hypocrisy.

"Sleepy Joe’s representatives have just put out an ad saying that I went to play golf (exercise) today. They think I should stay in the White House at all times. What they didn’t say is that it’s the first time I’ve played golf in almost 3 months, that Biden was constantly vacationing, relaxing & making shady deals with other countries, & that Barack was always playing golf, doing much of his traveling in a fume spewing 747 to play golf in Hawaii - Once even teeing off immediately after announcing the gruesome death of a great young man by ISIS!" tweeted Trump.

Continue Reading
 
 
You need honest news coverage. Help us deliver it. Join Raw Story Investigates for $1. Go ad-free.
close-image