Bailout Rules for Infected Corporations

Some years ago, I wrote a piece about Bombardier receiving tax-payers subsidies. In that piece I suggested some rules that should be put in place for such loans and subsidies.  As we are about to grant similar multi-billion handouts to major corporations, I thought I would repeat the rules as to how we should deal with the current crisis.

My own position is that no corporations should receive public funds, period.  However, until we straighten out our economy to be self-supporting, I would be prepared to lend affected industries the money they need, but only under certain conditions:

  1. The company cannot issue dividends or share buy-backs or any other kind of profit-sharing until the loan is repaid in full;
  2. No executive bonuses or similar payments to be paid until the loan is fully repaid;
  3. No executive salaries or other payments to be increased until the loan is fully repaid;
  4. If the company goes bankrupt (or similar), the taxpayer loan is in first place for repayment after wages and salaries.

Who on earth could object to this?  It gets the company the cash it needs and gives executives every incentive to repay the taxpayer as quickly as possible.  I would push this idea for any and all companies seeking tax-payer assistance.

2 Responses to Bailout Rules for Infected Corporations

  1. Al Green says:

    I agree, but who would object to proportional representation? Who would object to a green economy? who would object to recognizing the legal territorial rights of the people that live in our nation? Who would object to the investigation of money laundering and international crime that is feeding parasitically on our cities?
    As usual, politicians need to get stabbed in the face before they’re willing to do the right thing. And unfortunately Canadians just aren’t the kind to take action on anything, even when they’re getting thrown out of their homes because Bosa says “global families need a place to stash their wealth”.

  2. Bill says:

    Your bail out rules for corporations make sense Jak. We should protect the people first. Trump and his corporate tax cut and following stock buybacks only worked for a fortunate few and have contributed to the market mess we are now drowning in.

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