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.
Benzinga is covering every angle of how the coronavirus affects the financial world. For daily updates, sign up for our coronavirus newsletter.
Boeing 'Deserves' Bailout, Fiorina Says
Boeing Co 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.
Photo by Gage Skidmore via Wikimedia.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.