Exactly one month ago, President Trump signed the CARES Act into law at a Republicans-only signing ceremony at the White House.
The legislation was supposed to sure up the economy, stop the hemorrhaging of jobs and as Trump put it, “we’re going to have a rebound like we have never seen before.”
Chris Hohn the founder and manager of TCI Fund Management was the star speaker at this year's London Value Investor Conference, which took place on May 19th. The investor has earned himself a reputation for being one of the world's most successful hedge fund managers over the past few decades. TCI, which stands for The Read More
What President Trump signed
Despite those promises, here is what actually happened since President Trump signed the law:
- Historic Job Losses Week After Week. While the bill promised to help keep people in their jobs, each week since the law was signed more than 4 million Americans have filed for unemployment.
- Where are the Checks? The legislation included direct cash payments to Americans with the goal of helping them make ends meet. The administration still has not disclosed how many Americans have received their funds through bank transfers or checks. A decision to include President Trump’s name on relief checks reportedly led to delays and some checks may not be mailed for months.
- Small Help for Small Businesses. The administration’s program to keep small businesses afloat has been plagued from the start. It has awarded billions to well-connected companies and large publicly-traded firms, while millions of actual small businesses on the verge of bankruptcy have been shut out. Instead of fixing the problem, the administration continues to throw good tax money after bad.
- A Bailout… Potentially Sitting on the Sidelines. The legislation gave the Treasury Department $500 billion to support hard-hit industries. While firms are rushing to claim money for small businesses, it’s unclear what has been allocated from this bailout fund. The failure to harness these funds raise questions of why they were included in the bill and if they are needed, and why the funds are sitting on the sidelines with the economy in free fall.
- Tax Breaks for Companies Flush with Cash. Some companies that are thriving in this crisis have been — inexplicably — showered with unnecessary tax credits. Yet millions of small businesses teeter on the edge of financial ruin.
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