The Economic Disaster Media And Washington Haven’t Begun To Notice

1. But what of the insolvency crisis? While the generous business loans and grants in the very-important Senate package will help keep businesses on life support, will it hold the stitches of our economic fabric together? Money for payroll, utility bills, and the rent won’t establish trust that the parts company can pay for its aluminum in 30 days, and the need for more and more bailout spending, at the incredibly high risk of inflation, continues as more and more small and mid-sized companies join them in insolvency.
2. So how would it work? The owner of that aluminum company is hesitant to do business because he’s worried the parts maker will default on the bill, but what if the federal government will guarantee his losses if he keeps sending metal to the parts company? Now he’d be willing to send the aluminum, and the parts company can keep limping for a few more months while the scientists figure out how to beat the virus.

https://thefederalist.com/2020/03/23/the-economic-disaster-media-and-washington-havent-begun-to-notice/