Merryn obviously doesn’t see the irony of holding up 1930s America as providing examples of government programmes (whether under Hoover or Roosevelt) which worked, swiftly, fairly, and with few malign consequences.
1/x
1/x
But, no, debt is NOT the answer.
The state arbitrarily (possibly, illegally) shut businesses down: to demand repayment is like extracting a kidnap ransom by instalment.
So, what to do? 2/x
The state arbitrarily (possibly, illegally) shut businesses down: to demand repayment is like extracting a kidnap ransom by instalment.
So, what to do? 2/x
Debt should firstly commuted to a tax credit. Moves from liability to asset side of balance sheet which addresses the leverage (and hence creditworthiness) problem.
Most immediately rewards firms which most rapidly return to profitability once free to operate. 3/x
Most immediately rewards firms which most rapidly return to profitability once free to operate. 3/x
For those firms which sadly fail, those credits should be transferred -as with all other remaining assets- to the account of the creditors.
As the state’s added liability disappears more rapidly with faster business revival, it would also be incentivised to facilitate that 4/x
As the state’s added liability disappears more rapidly with faster business revival, it would also be incentivised to facilitate that 4/x
PS All politician, special advisor, and epidemiologist salaries, alliwances, expenses, and pension entitlements should ALSO be cut by 20% -if not in their entirety- while #lockdown persists.
Let’s have some ‘skin in the game’ at the top, too.
5/x
Let’s have some ‘skin in the game’ at the top, too.
5/x
@threadreaderapp unroll
An offsetting asset is obviously what I meant to say.
Maybe, like the #Fed, they could book it as a 'negative liability, thus cancelling the debt and not affecting leverage. 6/x
Maybe, like the #Fed, they could book it as a 'negative liability, thus cancelling the debt and not affecting leverage. 6/x
