The cover story behind the multi-trillion-dollar COVID bailout is that it will benefit big businesses, the unemployed, and small businesses. But that is not the real story. This money will largely benefit hedge funds, private equity firms and global corporations, not average Americans or the unemployed. Sure, they will get a small, one-time check, but that will never restore their pre-COVID salaries. No, the only entities that will really benefit from this trillion-dollar slush fund are the already powerful private equity firms and hedge funds. I
In this long article, political economist Matt Stoller lays out the background for the bailout and why it will not benefit average citizens who are lining up for a one-time handout.
The reason was first presented by an 18th century economist. Then, Stoller writes, “the closer you were to the king and the wealthy, the more you benefitted, and the further away you were, the more you were harmed. Money, in other words, is not neutral.” Money is not neutral, it goes to the most powerful and that is the way it will be in the COVID trillion-dollar bailout.
This is a long article and is for serious people who want a better understanding of how this bailout lacks the needed distribution channels to make it very effective. Instead, the choke points are being controlled by the favored distributors who have long-standing connections to the power and this obviously does not include average citizens.
This article will never be discussed in the mainstream media and not even in top economics departments. It is too accurate about the current political system that is supported by Congress and the Republican Trump administration.
Here is the article:
https://mattstoller.substack.com/p/the-cantillon-effect-why-wall-street?utm_campaign
