'The Coronavirus Economy: When Washington Takes Over Business' diff viewer (11/12)

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The Coronavirus Economy: When Washington Takes Over Business	The Coronavirus Economy: When Washington Takes Over Business
2020-07-02 19:37:27 UTC	2020-07-08 11:42:37 UTC (6 days later)
The $2 trillion coronavirus rescue package that the Senate passed on Wednesday will fundamentally transform the U.S. government by placing thousands of businesses and millions of workers on federally funded life support.	The $2 trillion coronavirus rescue package that the Senate passed on Wednesday will fundamentally transform the U.S. government by placing thousands of businesses and millions of workers on federally funded life support.
The government will pay the wages of some workers who remain on their companies’ payrolls. It will sustain other workers who have lost their jobs with checks that are as large as — or even larger than — what they were earning before they were laid off. And it will cushion some of the country’s largest corporations from bankruptcy, with taxpayers taking shares in those companies as collateral.	The government will pay the wages of some workers who remain on their companies’ payrolls. It will sustain other workers who have lost their jobs with checks that are as large as — or even larger than — what they were earning before they were laid off. And it will cushion some of the country’s largest corporations from bankruptcy, with taxpayers taking shares in those companies as collateral.
Rarely before has the government involved itself so deeply in the business of business. Amid a historic drop-off in economic activity, the bill temporarily transfers financial responsibility from private industry to the federal government, allowing the United States to control the levers of capitalism and potentially decide who wins and who loses. The level of intervention this week far outstrips the financial scope and breadth of recovery efforts during the 2008 financial crisis.	Rarely before has the government involved itself so deeply in the business of business. Amid a historic drop-off in economic activity, the bill temporarily transfers financial responsibility from private industry to the federal government, allowing the United States to control the levers of capitalism and potentially decide who wins and who loses. The level of intervention this week far outstrips the financial scope and breadth of recovery efforts during the 2008 financial crisis.
That is a controversial proposition in normal times but one lawmakers deemed necessary now, as companies large and small, from airlines and big banks to nail salons and brew pubs, face unprecedented hardship. The ripple effects have already sent millions of Americans into unemployment.	That is a controversial proposition in normal times but one lawmakers deemed necessary now, as companies large and small, from airlines and big banks to nail salons and brew pubs, face unprecedented hardship. The ripple effects have already sent millions of Americans into unemployment.
“We went to bed as America and woke up the next morning looking like social democratic Europe,” Erik Gordon, professor at the Ross School of Business at the University of Michigan, said. “We’ve made fun of Europe propping up their failing steel companies and car companies, and when push comes to shove we’re going to outdo them.”	“We went to bed as America and woke up the next morning looking like social democratic Europe,” Erik Gordon, professor at the Ross School of Business at the University of Michigan, said. “We’ve made fun of Europe propping up their failing steel companies and car companies, and when push comes to shove we’re going to outdo them.”
The government’s intervention will come in a variety of ways, including direct payments to individuals and businesses, generous loans in which the government agrees to backstop losses and equity stakes in companies. But there are strings attached, such as limits on executive pay and provisions that require companies receiving assistance to maintain employment levels at 90 percent of what they were.	The government’s intervention will come in a variety of ways, including direct payments to individuals and businesses, generous loans in which the government agrees to backstop losses and equity stakes in companies. But there are strings attached, such as limits on executive pay and provisions that require companies receiving assistance to maintain employment levels at 90 percent of what they were.
Midsize companies, or those with between 500 and 10,000 employees, get to borrow at an interest rate that is not higher than 2 percent annually, and don’t have to repay principal or interest for six months. The midsize companies cannot “outsource or offshore” jobs from the start of the loan until two years after it has been repaid.	Midsize companies, or those with between 500 and 10,000 employees, get to borrow at an interest rate that is not higher than 2 percent annually, and don’t have to repay principal or interest for six months. The midsize companies cannot “outsource or offshore” jobs from the start of the loan until two years after it has been repaid.
Businesses with 500 or fewer employees will get loans directly from banks to cover more than two months of payrolls and some other operating expenses, with the government paying off the balance so long as the companies either do not lay off workers or rehire ones they’ve already let go.	Businesses with 500 or fewer employees will get loans directly from banks to cover more than two months of payrolls and some other operating expenses, with the government paying off the balance so long as the companies either do not lay off workers or rehire ones they’ve already let go.
The government will inject more than $60 billion into the airline industry, including $25 billion in grants to pay employees of passenger airlines and $4 billion for those who work at cargo airlines. About $17 billion has been set aside largely for Boeing, which, because of two deadly crashes, was troubled before the virus brought many commercial flights to a standstill.	The government will inject more than $60 billion into the airline industry, including $25 billion in grants to pay employees of passenger airlines and $4 billion for those who work at cargo airlines. About $17 billion has been set aside largely for Boeing, which, because of two deadly crashes, was troubled before the virus brought many commercial flights to a standstill.
Not all businesses will be eligible for help, and not every eligible company will agree to the government’s terms. And some industries, including cruise lines and energy companies, were left on the sidelines.	Not all businesses will be eligible for help, and not every eligible company will agree to the government’s terms. And some industries, including cruise lines and energy companies, were left on the sidelines.
The major cruise companies appear not to qualify for loans because they are domiciled outside the United States and their employees are spread across the world.	The major cruise companies appear not to qualify for loans because they are domiciled outside the United States and their employees are spread across the world.
“We didn’t seek or expect a cash bailout, and it doesn’t appear anyway that we would qualify under the terms,” said Roger Frizzell, a spokesman for Carnival Corporation. “We have a significant employee presence in the U.S., but a majority of our employees are on ships, not in any location, certainly not based in the U.S.”	“We didn’t seek or expect a cash bailout, and it doesn’t appear anyway that we would qualify under the terms,” said Roger Frizzell, a spokesman for Carnival Corporation. “We have a significant employee presence in the U.S., but a majority of our employees are on ships, not in any location, certainly not based in the U.S.”
The legislation also does not include $3 billion that the Trump administration requested to buy crude oil for the Strategic Petroleum Reserve. Such a purchase could have helped lift demand for oil, and thus its price, which in the United States has tumbled to less than $25 a barrel in recent weeks. Solar and wind businesses were upset that lawmakers did not make it easier for them to benefit from tax credits for renewable energy.	The legislation also does not include $3 billion that the Trump administration requested to buy crude oil for the Strategic Petroleum Reserve. Such a purchase could have helped lift demand for oil, and thus its price, which in the United States has tumbled to less than $25 a barrel in recent weeks. Solar and wind businesses were upset that lawmakers did not make it easier for them to benefit from tax credits for renewable energy.
The epicenter of the intervention will be the Treasury Department, where Secretary Steven Mnuchin will oversee nearly a third of the $2 trillion in economic relief funds that Congress is approving.	The epicenter of the intervention will be the Treasury Department, where Secretary Steven Mnuchin will oversee nearly a third of the $2 trillion in economic relief funds that Congress is approving.
The money will be held in two pots: $350 billion will be devoted to loans and loan guarantees for small businesses. And $500 billion will be divided among airlines and companies that are critical to national security, including Boeing, and will prop up the Federal Reserve’s new emergency lending facilities, which are intended to inject nearly $4 trillion into the economy.	The money will be held in two pots: $350 billion will be devoted to loans and loan guarantees for small businesses. And $500 billion will be divided among airlines and companies that are critical to national security, including Boeing, and will prop up the Federal Reserve’s new emergency lending facilities, which are intended to inject nearly $4 trillion into the economy.
Mr. Mnuchin said on Thursday that the distribution of the money would be fully transparent. “When we do take actions, either through our direct program or throughout programs with the Fed, there will be disclosures to the American public much faster than they would normally occur,” he said on CNBC.	Mr. Mnuchin said on Thursday that the distribution of the money would be fully transparent. “When we do take actions, either through our direct program or throughout programs with the Fed, there will be disclosures to the American public much faster than they would normally occur,” he said on CNBC.
Businesses will also have to cede some control to the federal government in exchange for lifelines. Companies that borrow money are forbidden to repurchase their stock or pay dividends during the loan and for a year after it is repaid. They must not cut staffing by more than 10 percent through the end of September.	Businesses will also have to cede some control to the federal government in exchange for lifelines. Companies that borrow money are forbidden to repurchase their stock or pay dividends during the loan and for a year after it is repaid. They must not cut staffing by more than 10 percent through the end of September.
Loans to small businesses, with 500 employees or fewer, are limited to $10 million. Loans to cover salaries of over $100,000 wouldn’t qualify for forgiveness, and businesses must demonstrate that they had not recently laid off employees, or a smaller amount of the loan would be subject to forgiveness.	Loans to small businesses, with 500 employees or fewer, are limited to $10 million. Loans to cover salaries of over $100,000 wouldn’t qualify for forgiveness, and businesses must demonstrate that they had not recently laid off employees, or a smaller amount of the loan would be subject to forgiveness.
~~Updated ~~June~~ ~~30,~~ 2020~~	Updated July 7, 2020
	The coronavirus can stay aloft for hours in tiny droplets in stagnant air, infecting people as they inhale, mounting scientific evidence suggests. This risk is highest in crowded indoor spaces with poor ventilation, and may help explain super-spreading events reported in meatpacking plants, churches and restaurants. It’s unclear how often the virus is spread via these tiny droplets, or aerosols, compared with larger droplets that are expelled when a sick person coughs or sneezes, or transmitted through contact with contaminated surfaces, said Linsey Marr, an aerosol expert at Virginia Tech. Aerosols are released even when a person without symptoms exhales, talks or sings, according to Dr. Marr and more than 200 other experts, who have outlined the evidence in an open letter to the World Health Organization.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.	Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles.	Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles.
A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico.	A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico.
The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth.	The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth.
The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.	The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.	So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.	Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.	A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)	If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.	If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
Businesses would not have to repay loans covering up to eight weeks’ worth of payroll expenses. That means that once businesses receive their loans, a new clock will begin to tick: They’ll have to use the money within two months to avoid repaying it; they also can’t pay any employee more than $10,000 in those two months if they want that amount to be forgiven.	Businesses would not have to repay loans covering up to eight weeks’ worth of payroll expenses. That means that once businesses receive their loans, a new clock will begin to tick: They’ll have to use the money within two months to avoid repaying it; they also can’t pay any employee more than $10,000 in those two months if they want that amount to be forgiven.
Lawmakers also placed restrictions on compensation and pay increases for executives, moves intended to address one of the criticisms about bailouts during the 2008 crisis. But pay limits will not necessarily do away with multimillion-dollar paydays for corporate bosses.	Lawmakers also placed restrictions on compensation and pay increases for executives, moves intended to address one of the criticisms about bailouts during the 2008 crisis. But pay limits will not necessarily do away with multimillion-dollar paydays for corporate bosses.
Executives who made more than $3 million in 2019 could be awarded $3 million, plus half of any sum in excess of $3 million. As a result, a chief executive who earned $20 million in 2019 would be allowed compensation of $11.5 million. The restrictions would apply from the time the federal support began to one year after it ended.	Executives who made more than $3 million in 2019 could be awarded $3 million, plus half of any sum in excess of $3 million. As a result, a chief executive who earned $20 million in 2019 would be allowed compensation of $11.5 million. The restrictions would apply from the time the federal support began to one year after it ended.
Even as the government takes on an outsize role in overseeing companies, Mr. Mnuchin maintained that it should not be in the business of dictating what private companies did.	Even as the government takes on an outsize role in overseeing companies, Mr. Mnuchin maintained that it should not be in the business of dictating what private companies did.
“We don’t believe in mandating and regulating certain big businesses,” he said.	“We don’t believe in mandating and regulating certain big businesses,” he said.
And big business, despite its need for help, has seemed unwilling to cede too much control to the government. On Tuesday, Boeing’s chief executive, David Calhoun, suggested that he wasn’t interested in the government’s taking an equity stake in the company, despite the beleaguered state of the aerospace giant.	And big business, despite its need for help, has seemed unwilling to cede too much control to the government. On Tuesday, Boeing’s chief executive, David Calhoun, suggested that he wasn’t interested in the government’s taking an equity stake in the company, despite the beleaguered state of the aerospace giant.
“I don’t have a need for an equity stake,” Mr. Calhoun said in an interview on Fox Business Network. “If they forced it, we’d just look at all the other options, and we have got plenty.”	“I don’t have a need for an equity stake,” Mr. Calhoun said in an interview on Fox Business Network. “If they forced it, we’d just look at all the other options, and we have got plenty.”