What to do instead? In an interview with MarketWatch, Glassman says that he would like to see the Trump administration use the banking system to channel funds to the business community, large and small entities alike.
The idea is that banks will tell their business clients that they will be compensated for any loss of revenue caused by the cessation of activity. As the government wants work to stop to halt the spread of the coronavirus, they should pay for the damage caused by the stoppage.
The kicker is that banks would tell the businesses that the only way they would get the money is if they continue to pay their existing workforces. No layoffs.
That way workers don’t have to go on unemployment insurance,” Glassman said.
Under this plan, U.S. Treasury Secretary Steven Mnuchin would tell the banks, effectively, “We’ve got your back” and funnel stimulus money to the businesses.
This could last for six weeks.
Asked whether his proposal had gotten any traction, Glassman said he thought Sen. Marco Rubio, Republican of Florida, was thinking along similar lines. Wednesday, Rubio said he was looking for a way for lenders to provide businesses with money to make payroll over the next six weeks. If the loan were used totally for payroll, it would be forgiven, Rubio said.
Glassman said sending $1,000 to workers at restaurants and gyms won’t help the workers or the business. “Sending money in the mail is a random blast,” Glassman said.
Glassman said that, in his travels across the country over the last few weeks, he has discovered that “no one is confident that anyone is going to help them.”
“This is a self-inflicted wound. We’re shutting down the system [for a good reason] and we should just put companies on a holding pattern,” he said.
Glassman estimated the government would end up essentially paying the salaries of 70 million hourly workers at a cost of $5 billion per day. The program, though, would not cover gig-economy workers.
He said the bill for his proposal would be much lower than the trillions needed if Congress permits all those workers to be laid off.
The Staff: Finally someone with a Non-Political brain speaks up with an excellent idea. Will anyone in Washington Listen, no because they have no idea except Pres. Trump can understand running a business.
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