member 71782
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money and tax relief and national bank backing grace periods for re-payment schedules for those affected by the crisis, and support for manufacturers willing to alter production lines in order to produce goods needed to battle the virus would be considered government interference and contrary to neo-liberal ideology.
Simply shutting it down as you have suggested just isn’t an option, goods and services are essential. More so now than 1919.
Neo liberal economic ideology is the problem.
Everything else you mentioned would either be unnecessary or accomplished a lot easier and cheaply by simply shutting the financial markets down.
Do you need to bail out the markets to convert a factory? No. Direct cost coverage by the government takes care of that. Private financial institutions don't get to profit.
Can all necessities be manufactured, produced and distributed with financial markets shutdown? Yes. Financial compensation can still be made, at a lower, fixed rate for goods/medical supplies, food etc. Wages can still be paid etc. Private financial institutions don't get to profit.
Can tax holidays, bill relief still happen with financial markets closed? Yes. That's exactly what shutting them down would be designed to do. Private financial institutions don't get to profit.
Does anyone lose any money if financial markets are shutdown? No. Everything is frozen, eliminates economic panic. Stocks prices are frozen. Everything stops at one point in time to be restarted at that exact spot at another point in time. Restaurants that are closed and will go out of business because a loan that will pay their bills for a month won't help them six months later. They will already be out of business. Close the financials and when things return they are starting where they left off, no further ahead or behind. Private financial institutions don't get to profit.
The only direct infusion of money that should be put into the economy is into the bank accounts of people. All bills would be suspended and pick up where they left off when everything returns to normal. That means people have no financial worries. No one will lose their home, miss a bill payment, have utilities shut off etc. All necessities should be made available, food, medicine, a certain amount of fuel based on if the person is still working or to cover travel to appointments, public transit would be covered etc. Anyone working would still get their cheque while anyone not working would not need unemployment insurance or if they are collecting it could be stopped and restarted when things return to normal.
Provide a monthly subsidy for all, that really only builds peoples savings until things return to normal. That money would help to get the economy going to avoid a recession as we return to normal.
Keeping financial markets open are forcing extra subsides to groups that provide no value to the economy and would only profit a few at the expense of everyone else which leads to recession, greater loss of business, greater loss of jobs and most importantly greater loss of life at a much higher financial cost.
Why support a sector which serves no other purpose except to generate a profit as a middleman creating unnecessary costs?