Businesses are going bancrupt, because of this crises. Of course they are. And... are you guys aware what this means? Corona Virus has a survival rate of 95%. Fullblown economic breakdown has a survival rate of much less. Maybe 60%. Why? Because the health care system is going to fall apart - not that the US has one of course - and you'll die of any stupid illness, that doctors are capable of saving you from today...
And politicians are not acting fast enough. Strangely enough, since I read a plan from the german government that they wrote in 2012 about a corona virus pandemic, and how the government needs to react. (No there is no conspiracy, back then SARS had just shocked the world, which is a Corona Virus...)
What needs to be done? We need to freeze the economy, so we can restart it afterwards. How do you freeze the economy?
So, how to put this in a frozen state?
- the state prohibits rent (or reduces it to say 25%)
- the state prohibits firing of employees
- the state prohibits the payment of interest to banks (or reduces it to say 1%)
- the state prohibits the payment of salary for employees who don't work
- the state pays the non-working employees 50% of their monthly income
- the state pays landlords who have no other income 50% of their rent
- the state gives 0% credits to pay for investments that were already made, and that will arrive at the consumer after the crisis
- the state prohibits the payment of salaries greater than 7000 dollar per month - nobody needs that much money
Why does this work?
- the company will have no income, but it will have to pay nothing either
- the employees do not have to pay rent
- the employees do not have to pay bank interest
- the employees have enough money to buy food, internet, and other things that keep running
- salaries are the biggest expenses for nearly all businesses
- the banks can survive without the interests too, since they too, do not have to pay employees
- there are prolly some details that I have missed and that the stant will have to pay too
Everybody has less, but the economy does not break down, it is simply frozen, and it can thus restart (no business goes bancrupt, employees keep their jobs). Of course this only works for a short time, so lets hope this mess does not last for a year...