Meskers: Federal Loans and Assistance In Response to COVID-19 Must Benefit Taxpayers

Submitted by State Rep Steve Meskers (D-150)

We are now in the midst of a defining crisis of our lifetimes. The economic costs will eclipse those of the financial crisis of 2008. The health costs, at both an individual and societal level, will be even greater. We will be tested and we will persevere through our mutual sacrifice.

In order to ensure that Americans have jobs to which to return when this pandemic abates, it is essential that Federal Government support the private sector at this time of maximum stress. In response to the 2008 meltdown the US Treasury created the Troubled Asset Relief Program, otherwise known as TARP. This program gave the [US Treasury/Federal Government] an ownership stake in the firms which directly benefited from government support and investment. Banks, insurance companies, and automakers were among the beneficiaries.

This time, as we determine how to best support the firms which support our economy we should not lose sight of the fact that the money being invested is that of the taxpayer.

Taxpayers should be the ones able to reap the rewards when the economy bounces back and not only the corporations. To this end, I have proposed to our federal representatives that any all credit/loans and assistance provided by the government create long dated warrants and or non-voting common or preferred shares and that those assets arising from our support be placed in a Social Security trust fund. This will assure that the tax payers benefit from our mutual sacrifice.

The beneficiary of this coming recovery, and our enormous investment, should be the Social Security trust fund.