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Roland99

(53,342 posts)
Mon Mar 23, 2020, 02:59 PM Mar 2020

Easy way to explain why corporations do NOT need a bailout

A corporation is NOT a person. It's certainly not a family. It's an entity that holds assets and uses labor to produce a good or provide a service.

If all of that labor goes away, the corporation will cease to exist.

If the corporation cannot sell its product or services, it will cut back on labor. If it cuts back enough, its value on the market, aka stock price, will fall accordingly. It will fall to the point where some other group or corporation will be willing to buy what's left and, after the medical crisis passes, start rebuilding the corporation and producing product or providing services.

Bailing out a corporation will NOT save jobs as it will not create demand for its products or services...it only saves the owners (stockholders). Bailing out corporations flies in the face of capitalism, esp. the conservative view of it as it is today.

Bailing out Americans allows them to actually LIVE (to buy food, medicine, keep their home, etc)

8 replies = new reply since forum marked as read
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Easy way to explain why corporations do NOT need a bailout (Original Post) Roland99 Mar 2020 OP
If you give money to real humans, they will go out and spend it htuttle Mar 2020 #1
I say we follow Mitt "Corporations Are People, My Friend" Romney's lead tishaLA Mar 2020 #2
+1 Varaddem Mar 2020 #5
If this was a fair and just country..... Brainfodder Mar 2020 #3
They don't care if you live Nature Man Mar 2020 #4
Essential corporations will survive. GeorgeGist Mar 2020 #6
They also have assets to borrow against underpants Mar 2020 #7
Yes, excellent point...thank you. Roland99 Mar 2020 #8

htuttle

(23,738 posts)
1. If you give money to real humans, they will go out and spend it
Mon Mar 23, 2020, 03:04 PM
Mar 2020

Thus. keeping a lot of business alive.

tishaLA

(14,176 posts)
2. I say we follow Mitt "Corporations Are People, My Friend" Romney's lead
Mon Mar 23, 2020, 03:06 PM
Mar 2020

and, if they are people, they're eligible to get $1200 assuming their gross income fits within the requirements.

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