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Carly Fiorina Blasts Corporate Bailout Funding In $2T Coronavirus Relief Bill

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Carly Fiorina Blasts Corporate Bailout Funding In $2T Coronavirus Relief Bill

The $2-trillion coronavirus relief bill signed into law by President Donald Trump deserves credit for offering a helping hand to small businesses and individuals, former Hewlett Packard CEO Carly Fiorina said Friday on CNBC's "Closing Bell." 

Fiorina said the bill has faults — namely, in the $500 billion earmarked for "corporate bailouts." 

Fiorina Says Bailouts Don't Work 

Large companies will become eligible to benefit from the government funding, but if history is any indication, any bailouts are destined to fail, Fiorina said. This was most evident in the previous economic downturn in 2008, she said.

In the auto sector, small auto suppliers that took a bailout "were crushed," the former 2016 GOP presidential candidate said. These small businesses suffered more job losses than were saved in the bailout, she said. 

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Boeing 'Deserves' Bailout, Fiorina Says 

Boeing Co (NYSE: BA) has operated in a manner in which it "deserves" a bailout, while airlines spent the past few years "loading up on cheap debt" to buy back their own shares, Fiorina said.

The cruise industry, for the most part, has avoided registering ships in the U.S. to dodge taxes, she said. 

"I think it is not taxpayer money well spent and I don't think the companies, honestly, have earned it." 

A common misconception among the public is that the only two options available are accepting a bailout or ceasing to exist, Fiorina said.

Airlines have made use of bankruptcy laws in the past which allowed them to continue operations and pay employees until a more permanent solution is found, she said. 

"The notion that all the jobs will disappear and no one will get paid unless these companies are bailed out simply isn't factual." 

Fiorina Says Small Biz, Public Health Need Investment 

The government could "do more" for small businesses, invest in resources to better deal with a potential mental health crisis and address a potential spike in domestic violence cases, in Fiorina's view. 

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Photo by Gage Skidmore via Wikimedia

 

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