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Here are the issues from my paper napkin analysis: * large businesses not being able to pay for maintenance of tools. * small businesses not being able to pay
by ccktlmazeltov 7y ago
Here are the issues from my paper napkin analysis:
* large businesses not being able to pay for maintenance of tools.
* small businesses not being able to pay employees, rent, services, etc.
* people not being able to pay for rent and food.
What are possible solutions for a long-term lockdown?
* for large businesses: bail out.
* for small businesses: rent should be free.
* for people: rent should be free, food should be distributed like in times of war.
- ip26 7y agoI am not sure you're going to successfully nationalize all commercial property, but temporarily freezing interest on debt & suspending payments is interesting to ponder. For example, most mortgages are held by the Fed, so they have the ability to do that. Similarly for t-bills. I'm sure a real economist can tell me why it wouldn't work, of course. But in general, rent must be collected because debt must be paid, so if debt were frozen then rents actually could be deferred.
- asdff 7y agoI wonder if the hit from freezing debt is less than the gain from having the vast majority of the working economy get a de facto 2x raise. Lots of people are rent burdened which only hurts an economy driven by consumer spending.
- donatj 7y ago> rent should be free What about property maintenance?