PSP 2.0; is it gonna happen?
07-02-2020, 06:45 AM
#41
Prime Minister/Moderator
Joined APC: Jan 2006
Position: Engines Turn Or People Swim
Posts: 39,292
Originally Posted by Downtime
In fairness everyone was cancelling because the government said oh s.... incoming. Everyone run. So yes cancelations preceded some closures but by the time we heard about that NY, CA, and WA were already going to shelter in place.
The airlines didn't do this to themselves. Most businesses have no requirement or realistic need to prepare for an extended period of zero revenue. Especially if you're in the commodity business, with razor-thin margins and plenty of competition.
The airlines are critical economic infrastructure, and some of the big ones are critical national security infrastructure.
Unlike the banks in 2008, they were pure victims, not the root cause. While public fears would have made a huge dent in traffic anyway, governments did essentially order travel to stop.
Maybe corporate governance rules will change and require airlines to save more for a rainy day, given their oft-demonstrated fragility in the face of economic turmoil.
07-02-2020, 09:27 AM
#42
You scratched my anchor
Joined APC: Feb 2011
Posts: 4,876
07-03-2020, 03:44 AM
#43
Banned
Joined APC: Jun 2008
Position: Down N Out
Posts: 145
Originally Posted by Qotsaautopilot
I’ve been spending during this time which is how our economy works. If it weren’t for the cares act my wallet would’ve been shut. Multiply this by hundreds of thousands of airline employees and the economic damage would’ve been more than the cares act cost which is precisely why it passed and was signed by the president.
Also we are not Greece. The dollar is the most powerful currency in the world. The United States doesn’t have to be debt free by retirement or death like a person. This isn’t kitchen table finance. As long as GDP grows the debt can actually grow with it as long as you can service it and the rest of the world believes in the dollar. This can go on forever.
I’m not advocating for endless senseless government spending but in this case it was necessary. Not so we all do nothing forever but to stop the bleeding enough so we can get back to producing that GDP and servicing said debt.
Also we are not Greece. The dollar is the most powerful currency in the world. The United States doesn’t have to be debt free by retirement or death like a person. This isn’t kitchen table finance. As long as GDP grows the debt can actually grow with it as long as you can service it and the rest of the world believes in the dollar. This can go on forever.
I’m not advocating for endless senseless government spending but in this case it was necessary. Not so we all do nothing forever but to stop the bleeding enough so we can get back to producing that GDP and servicing said debt.
07-04-2020, 05:47 AM
#44
Gets Weekends Off
Joined APC: Oct 2010
Posts: 4,603
You actually can as long as GDP grows a the same rate or faster than the debt.
If you put everyone on the government payroll and sitting around doing nothing like welfare and social security then GDP doesn’t grow because no one is producing. Then you have a problem.
If you put everyone on the government payroll and sitting around doing nothing like welfare and social security then GDP doesn’t grow because no one is producing. Then you have a problem.
07-05-2020, 02:13 AM
#45
Banned
Joined APC: Jun 2008
Position: Down N Out
Posts: 145
Originally Posted by Qotsaautopilot
You actually can as long as GDP grows a the same rate or faster than the debt.
If you put everyone on the government payroll and sitting around doing nothing like welfare and social security then GDP doesn’t grow because no one is producing. Then you have a problem.
If you put everyone on the government payroll and sitting around doing nothing like welfare and social security then GDP doesn’t grow because no one is producing. Then you have a problem.
07-05-2020, 07:21 PM
#46
Gets Weekends Off
Joined APC: Oct 2005
Position: Trying not to crash
Posts: 1,260
Originally Posted by Qotsaautopilot
You actually can as long as GDP grows a the same rate or faster than the debt.
If you put everyone on the government payroll and sitting around doing nothing like welfare and social security then GDP doesn’t grow because no one is producing. Then you have a problem.
If you put everyone on the government payroll and sitting around doing nothing like welfare and social security then GDP doesn’t grow because no one is producing. Then you have a problem.
Sent from my SM-N975F using Tapatalk
07-05-2020, 10:55 PM
#47
Banned
Joined APC: Jul 2010
Position: 737 NG CAPT.
Posts: 216
Originally Posted by Qotsaautopilot
You actually can as long as GDP grows a the same rate or faster than the debt.
If you put everyone on the government payroll and sitting around doing nothing like welfare and social security then GDP doesn’t grow because no one is producing. Then you have a problem.
If you put everyone on the government payroll and sitting around doing nothing like welfare and social security then GDP doesn’t grow because no one is producing. Then you have a problem.
Thread
Thread Starter
Forum
Replies
Last Post
