Assisting workers during the pandemic is about supporting businesses. Like other institutions, businesses are just vehicles. They are not like people who make all the decisions. The left complains about the government not supporting companies. Although the left is pro-worker and anti-business, it’s a flawed position. Pro worker logic suggests that you should be pro-business in order to ensure businesses create and sustain jobs and economic value.
Supporting Businesses During Pandemic
Companies are needed to employ people to supply goods and services. Governments without businesses have no revenue, charities no funds, the economy has no long-term economic wealth, and the government doesn’t have any payments. Governments don’t create long-term, productive jobs. We must emphasize support for businesses to ensure that they have people on their payrolls after and during the pandemic. This approach, when combined with effective leadership and planning, will save lives and protect the economy.
Canada was right behind Denmark, and Trump followed suit with his narcissistic approach to basking in his “soaring TV ratings.” The Danes’ main goal is to avoid mass layoffs. They will pay 75 percent of the salaries of employees of private companies affected by the pandemic. The government will allow some people to remain home, in effect. This benefit is not available to those who work. It will cost approximately US$2.5 trillion, or 13 percent of the GDP, for three months. To prevent financial sector closures, the Danish government also agreed to guarantee 70 percent of all new bank loans. This funding is expected to encourage lending.
Canada’s Pandemic Support is on the Right Track
Canada announced an $82 billion aid package (4 percent of its GDP) to assist Canadians and their businesses. It includes $27billion indirect income support and wages support and $55billion to improve business liquidity via tax deferrals.
It is crucial to provide loans to small businesses that require help with payrolls. These firms cannot lay off employees. This allows firms to return to pre-pandemic levels once we have gotten out of the crisis. Another option is for firms to let workers go and then apply for unemployment benefits. People who aren’t working can become demotivated and stressed and may leave the workforce. The firm could also close without the support, and workers will need to be retrained. It is much more challenging to start over after completing than it is to mothball and stay open until the pandemic passes. The Danish approach is better for people, businesses, and the economy.
Seven changes to corporate taxes & corporate welfare
These are just band-aids. Firms would be able to cope with crises better if they had equal playing fields, no corporate taxes, and no corporate welfare. This pandemic offers an opportunity to think about how to improve corporate taxation and corporate welfare. These changes should be implemented by the Canadian and American governments as we recover from the effects of the pandemic.
Eliminate all business taxes
Businesses do not receive welfare payments.
Outlaw stock buybacks.
If they have laid off employees in five years consecutively, CEOs, board members, and executives cannot receive bonuses.
Chief executives should be held accountable for any fraud that they may have committed against their company. The CEO should be held responsible for the company’s fraud, not the CEO. This will penalize shareholders and reward the CEO.
Even if they didn’t take part, CEOs have to repay bonuses received during the fraudulent period.
At each annual general meeting, CEOs must send shareholders a letter stating that they have done due diligence in the past year and that they and their senior staff have not been aware of any illegal or fraudulent activities within the company.
Only God knows when and how this crisis will be over. We know that the USA’s narcissistic, asinine leader is only concerned about his ratings. Let’s hope he realizes that his reckless behavior is causing harm to not only his followers in the USA but all those who listen to him.
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