Donnie's Hour.

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The COVID-19 crisis is a major disaster in several respects. First, it’s a health disaster of the first order, one that is going to cost many thousands of people their lives over the coming weeks and months. That would be more than bad enough on its own. But it’s also an economic catastrophe for individuals, families, businesses, and organizations all over the country. This aspect, too, will be the undoing of many of its victims. It’s hard to imagine how people on the edge are going to get through these next few months. It’s just as hard to imagine that small businesses won’t fold by the million as the economic shutdown, by necessity, continues. This crisis has the potential, as many have said, to reshape our economy and our society in fundamental ways, and not clearly for the better.

Take the response (or “CARES”) package passed by Congress and signed into law by the moron-in-chief. David Dayen has laid this out in detail in the American Prospect. Simply put, the funds being directed to poor and working people are going to be way too slow in coming. If you aren’t set up to receive tax refunds via EFT, you could be waiting a long time for that check to arrive. People in the informal economy (including many working musicians, as it happens) may not get any help at all. Small businesses can apply to get loans through the SBA that would become grants if they retain their workforce, but the SBA is a slow-moving entity and not resourced to handle the national crush of requests that will be coming its way. On the other hand, major corporations will benefit from a $500 billion bailout, $425 billion of which will be vested in the Federal Reserve to provide base capital for up to ten times that amount in low-interest loans to big business, financial institutions, etc. That money does not require workforce retention – companies can use it for downsizing, mergers and acquisitions – everything short of stock buybacks, which are barred for the term of the loan.

That combination of factors will greatly advantage larger players over smaller ones in this economy. That auto shop on the corner? He’s history. Bring your car to the dealership. That’s what this could look like. Meanwhile, the president is having the time of his life. He’s bragged about the ratings his 5pm daily Coronavirus update is drawing, and he’s treating these press events like it’s a reality show, bringing on the My Pillow nutcase, picking fights with journalists, spewing garbage like a leaky barge. Two weeks ago, he was talking about ending the social distancing measures, but now he’s seen the advantage of just riding with it. And to some extent, the American people, in their infinite wisdom, are rewarding him with marginally higher poll numbers, despite the fact that Trump’s inaction over the last three months has blown this pandemic threat into a full-fledged national emergency that, at best, will kill well more than 100,000 Americans, and likely multiples of that number.

Trump thinks 100k deaths would be evidence of his competence. It’s anything but. He needs accountability, and we need to keep this country from slipping into the oligarch’s paradise he’s always dreamed of.

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jp