Nobel economist: The coronavirus stimulus can't be a corporate bail-out. We need a new playbook for relief
Three years ago, in an ugly display of pigs feeding at the trough, there was a rush of special interests to take advantage of a secretive tax bill moving quickly through the Senate, with tens of billions of dollars going to certain industries, like real estate. We saw what happened: a short burst of economic growth that turned out to be remarkably weak, given the size of the deficit that it brought about. This year, growth was expected to decline to anemic levels—lower than 2 percent. While the predicted 1 trillion dollar deficits quickly emerged, the promised increases in investment and wages did not, as corporations paid out almost a trillion dollars in share buybacks.