member 71782
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Not just about hockey on this topic but I would suspect the Governments around the world will be offering stimulus financial packages to private business in general. The financial cost of this is going to be unreal in the end and it’s a long way from being “under control”. We’re going to have to be careful this doesn’t trigger an all out global Depression never mind a Recession! Like you not fear mongering but it’s somewhat unchartered waters we are in.
There's a simple solution to the economics of all this, freeze them.
Freeze all accounts so all financial transactions are suspended. All current obligations are frozen in place to be resumed at a specified time when things can be brought back to normal. When people have no immediate financial concerns they can take the time off from unnecessary jobs to minimize exposure.
Use whatever type of war powers acts are available to move needed goods and services at cost. The government foots the bill and all transactions are tracked and submitted to ensure suppliers don't lose money or profit off the situation. This opens access to meet peoples needs while eliminating the perceived need to hoard supplies. Everyone's basic needs are met while reducing the ability for black market profiteering as financial transactions across society have been suspended. No one goes into further debt trying to simply survive.
Create a financial savings stream for people for the next six months so that when economic activity can resume society has the means to resume it. Extend as needed, six months would be a minimum starting point and it should continue for three months after all quarantining has been lifted. Combined with suspension of all current financial transactions all businesses should remain viable as well as all jobs be there when normal economic activity resumes. There would be no need to provide cumbersome loans to keep businesses currently shutdown afloat when they still have no way to finance those loans.
Anyone still working would collect there regular salaries, unable to spend them for now and other positions could be created to meet the needs of those at risk of leaving their homes, people to deliver supplies/food etc.
When normal economic activity resumes there will be a huge pent up demand for goods and services and suspension of financial transactions combined with a monthly payment to each citizen allows for business to resume and people having the financial ability to support a resumption of economic activity. Two months after economic activity resumes all debt obligations resume. Three months after economic activity resumes government payments cease. All fixed price costs related to keeping societies needs met would be made throughout the crisis.
To recover the funds a 2% increase to the HST would be implemented until all accrued debts are resolved.