Options for Bail Outs

The big question during this strange time is who should receive aid from the government. As packages are/were being proposed, there is an inherent tension between individuals and businesses. And within businesses, there is further tension between big business and small. We saw the failings of an approach that openly favors big businesses, but it is more complicated than just reversing the “trickle down” approach. This tension is expressed in an article from a few days ago from the Washington Post. The debate can be summed up in the following quote from the article:

The choice is between two options unsavory to many: bail out some of the country’s largest corporations or watch as they put more people out of work.

Equity is key here, but how one determines what is most equitable is beyond my knowledge. Balancing direct relief to struggling individuals is critical to their immediate survival but does not ensure long-term resiliency. Already, the US is seeing record unemployment claims. Yes, there is a clearly defined cause for this, and it has nothing to do with demand. But without knowing the full extent of the impact (both in the US and globally) determining how economies will bounce back is difficult. Hopes that normal operations could start up in a short time frame are not likely to come to fruition. This is where the tension between the short-term and the long-term becomes critical. For the most vulnerable, short-term survival is critical and the most pressing need. But when all is said and done, the ability for people to return to jobs is key.