
Why Wall Street Gets a Bailout and You Don't - radkapital
https://mattstoller.substack.com/p/the-cantillon-effect-why-wall-street
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fxtentacle
I wonder if it was ever considered to pay companies / individuals according to
their relative tax rate. So an employee would get 30-40% of the baseline,
while international companies using offshore trickery get almost nothing.

Otherwise, like the article says, a large part of US stimulus packages will
ultimately end up with foreigners or in Panama or other offshore tax havens.
And that wouldn't help the US economy much.

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jonas21
This would ensure that among individuals, those who need the stimulus most
(people with lower income) would get the least money.

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fxtentacle
Good point, it seems this doesn't work well for people.

For businesses, I also agree that one would be discriminating against small
businesses which were already struggling before corona and, hence, have low
profits and as such low taxes.

But if your goal is to revitalize the economy in general, focusing on small
businesses that used to be successful, e.g. artisan bakery and independent
coffee shops, seems like a good way to spread the money around.

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AbrahamParangi
I never could see a use for cryptocurrency outside of black/greymarket
transactions.

Now I can see one: a currency that a central bank can't create more of to bail
out someone else's incompetence and greed.

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badrabbit
Ok, then. I guess you also have a plan to avoid the second great depression?
Lots of pain,death and suffering. The higher you climb, the harder you fall.
Look at venezuela and imagine astronomically worse.

They should perhaps consider taking criminal action against execs ,create
better regulation and permanetly take away equity from these companies but why
do people think it's a good idea to let th fail and watch the fire burn as if
they won't burn everything you have down with them?

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AbrahamParangi
Rewards require risks. Take away the downside and you'll find you've also
destroyed the upside. This is everywhere in life, not just in economics.

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renewiltord
Yeah, but the causative link doesn't work the other way. Sometimes you can add
more downside and get no more upside. My prediction? This stimulus package
won't destroy the upside.

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lostmsu
This prediction is unverifiable, as you don't know what would have happened in
2, 5, 10 years, if the bailout did not happen.

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renewiltord
Ah ha, that's fair. But that is just as well a problem with the original
assertion. So I suppose I'm happy to listen to the prediction as to which
upsides are about to be destroyed and then perhaps pick a position opposite it
that's verifiable.

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nojvek
This pandemic will amplify the wealth inequality drastically. The poor will
lose their jobs and houses, while the mega rich will find a way to tap into
those trillion dollar stimulus funds.

I don’t understand why Congress wouldn’t pass a simpler, $1000 to every person
with SSN and address in file + $500/dependent.

It would have been faster to process and get that money out. It would save
people from losing their homes and put food on the table. IRS still hasn’t
started sending those checks out and so many people will still miss out. IRS
is the most effective institution that could aid millions of people in a short
time.

I just don’t get why America is so afraid of being a bit socialist ? Wouldn’t
this save the people & economy in the long term?

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Waterluvian
Yeah you ought to see how it's being rolled out in Canada.

In Ontario I filled out an incredibly short web form (address, name, child's
name, bank account). And in turn they wire $200 per child into my account to
buy them learning supplies. There are no financial restrictions. They just
want to get the money out. I'm sure I'll pay for it later with all the tax I
pay. Still proud of it. Socialism shines during crisis.

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mantas
What does it have to do with socialism?

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jblow
Article is terrible.

First, these are short-term loans, with forgiveness being discussed for small
businesses (not for Wall Street).

Second, there _is_ money going out to individuals, so the "you don't" part of
the title is BS. [https://www.cnn.com/2020/04/01/politics/stimulus-money-
distr...](https://www.cnn.com/2020/04/01/politics/stimulus-money-distribution-
individuals/index.html)

Like does this guy even read the news? What is going on?

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thundergolfer
You say the article is terrible but your problems deal just with the title.
The article acknowledges the things you say it doesn’t.

