Money for workers or Money for the economy?

[URedskin54]

Even when you’re talking about larger businesses in industries like retail and food, most of them operate on very thin margins. It doesn’t take much of a dip in demand to start hemorrhaging cash. And then when you look at the kind of scaling back many of them have already had to do because of Amazon and others, the idea that they’re just supposed to have months of cash available to pay employees without revenue is pure fantasy. The only companies that this really applies to are the airlines because they have done exceedingly well over the past several years, and knowing their history they should have prepared.

 

[Clong83a]

Even when you’re talking about larger businesses in industries like retail and food, most of them operate on very thin margins. It doesn’t take much of a dip in demand to start hemorrhaging cash. And then when you look at the kind of scaling back many of them have already had to do because of Amazon and others, the idea that they’re just supposed to have months of cash available to pay employees without revenue is fantasy.

Agree, I suppose. Some industries can hoard money easier than others. Apple has something like 100 billion dollars laying around. They could probably close up shop and keep paying all their employees for a couple of years if need be. Aramark? Yeah, probably not.

Anyway, I am not opposed to bailouts of entire industries at a time like this, as long as the small businesses are not forgotten.

 

[URedskin54]

Agree, I suppose. Some industries can hoard money easier than others. Apple has something like 100 billion dollars laying around. They could probably close up shop and keep paying all their employees for a couple of years if need be. Aramark? Yeah, probably not.

Anyway, I am not opposed to bailouts of entire industries at a time like this, as long as the small businesses are not forgotten.

Yeah tech is a whole different story. My company makes $240 an hour for every hour I work. The margins are extremely healthy. But if you look at someone like Focus Brands (they own McAllister’s, Schlotzky’s, Cinnabon, and a few others), they’re already furloughing people in their corporate offices. They’re the second company that I know of that is getting hit hard enough to get rid of some upper management.

 

[astonmartin708]

Yeah tech is a whole different story. My company makes $240 an hour for every hour I work. The margins are extremely healthy. But if you look at someone like Focus Brands (they own McAllister’s, Schlotzky’s, Cinnabon, and a few others), they’re already furloughing people in their corporate offices. They’re the second company that I work with that is getting hit hard enough to get rid of some upper management.

People and corporations have trouble operating at small margins. Hence why people complain when they're told they should have an emergency fund and why many people can't afford more than a few hundred dollars in emergency expense.

 

[lawpoke87]

People and corporations have trouble operating at small margins. Hence why people complain when they're told they should have an emergency fund and why many people can't afford more than a few hundred dollars in emergency expense.

Assume you would argue that those individuals mismanage their finances as well?

 

[astonmartin708]

Assume you would argue that those individuals mismanage their finances as well?

Some do. Some don't. I'm actually understanding that people (or corporations) can't adapt with those small margins.

 

[URedskin54]

Seems like this is going to rapidly hasten the move to mega corporations providing nearly all goods and services.

Here we go

 

[Rippin]

Those margins may remain small but... if everything is closed or half of entertainment is closed, not only does each dollar lose value but you’re also pouring trillions of extra dollars into an economy that’s not operating at 100 (or even 65%) so you have the very real potential for hyperinflation.

 

[aTUfan]

it was interesting to read today that with all the sacrifice, hibernating, businesses folding, only essential services remaining open, that an inmate in a Utah prison can get his whackadickfromme; at taxpayer expense. I wonder if he also got his stimulus check?