business

Corporate bankruptcies in 2020 fall to 31-year low with gov't aid

16 Comments

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Government just supports big corporations ( Especially those with ties to the LDP ) and local mom and pop stores suffer! Nothing in terms of financial assistance given to the common man out there! Other countries have given stimulus ( financial handouts ) to citizens multiple times but in Japan just once 100,000yen which took 3 months to be handed out! It’s time to give another handout to all citizens ASAP!!!

1 ( +1 / -0 )

Keeping those zombie companies alive do more harm than good. Funny how the working class is subsidizing the rich companies with their tax money. The whole "stimulus" thing doesn't help anyone but the political ruling class and their friends.

2 ( +2 / -0 )

A big part of the problem is when the government picks winners and losers through its policies, egged on by big corporations and lobby groups that "influence" their decisions. That's not capitalism or a market economy, but corporatism/corporate socialism, and is a problem that extends way beyond Japan, of course. Many of these businesses would have gone bankrupt if the virus had not come along because they're poorly managed and/or don't produce what the market wants for a competitive price. By bailing out these zombie companies, the government is clumsily diverting resources to places in the market where they aren't efficiently used. And that's money that could have gone to healthcare or not collected as tax in the first place, thereby staying in the economy and flowing to more efficient use of goods, resources and services.

The other side of the coin is that government policy of urging everyone to stay home (instead of just paying those who are legitimately most vulnerable to stay home until they can get a jab), since they can't legally mandate it, is keeping people who aren't vulnerable to this virus from participating to a normal extent in the economy and forcing businesses that rely on physical traffic from going about their business. Pitiful handouts aren't going to replace the lost business that government policy is causing. All the government is doing is preventing viable businesses from functioning and throwing back a handful of peanuts as pretend compensation.

I think a good compromise under the circumstances would be for the government to lift this SoE, and divert the money spent to healthcare and support for people most vulnerable to the virus, and let people who are not vulnerable - the vast majority - get back to normal. People will die, sadly, because most of the people who have succumbed to SARS-CoV-2 were very old and/or had medical conditions that seriously compromised their immune systems. But focused protection will help to minimise this to the extent realistic while removing support for the zombies in a phased manner and allowing profitable businesses to get back into action, with the social benefits that flow from this.

Crony Capitalism.

0 ( +1 / -1 )

So another example off the rich being supported at the expense of taxpayer.

Obviously many of these companies were doing badly anyway - lack of innovation, sunset type businesses - that shouldn't be around anyway.

4 ( +5 / -1 )

I want to work hard to give all my tax money to these big corporations because I watch their adverts and all the staff look cute and happy.

but my small business is bankrupt...

6 ( +6 / -0 )

A big part of the problem is when the government picks winners and losers through its policies, egged on by big corporations and lobby groups that "influence" their decisions. That's not capitalism or a market economy, but corporatism/corporate socialism, and is a problem that extends way beyond Japan, of course. Many of these businesses would have gone bankrupt if the virus had not come along because they're poorly managed and/or don't produce what the market wants for a competitive price. By bailing out these zombie companies, the government is clumsily diverting resources to places in the market where they aren't efficiently used. And that's money that could have gone to healthcare or not collected as tax in the first place, thereby staying in the economy and flowing to more efficient use of goods, resources and services.

The other side of the coin is that government policy of urging everyone to stay home (instead of just paying those who are legitimately most vulnerable to stay home until they can get a jab), since they can't legally mandate it, is keeping people who aren't vulnerable to this virus from participating to a normal extent in the economy and forcing businesses that rely on physical traffic from going about their business. Pitiful handouts aren't going to replace the lost business that government policy is causing. All the government is doing is preventing viable businesses from functioning and throwing back a handful of peanuts as pretend compensation.

I think a good compromise under the circumstances would be for the government to lift this SoE, and divert the money spent to healthcare and support for people most vulnerable to the virus, and let people who are not vulnerable - the vast majority - get back to normal. People will die, sadly, because most of the people who have succumbed to SARS-CoV-2 were very old and/or had medical conditions that seriously compromised their immune systems. But focused protection will help to minimise this to the extent realistic while removing support for the zombies in a phased manner and allowing profitable businesses to get back into action, with the social benefits that flow from this.

2 ( +2 / -0 )

It's okay, I'm sure the wealth will trickle down any day now. /s

4 ( +4 / -0 )

Yep more tax payers money needed to prop up companies, screw the poor. As a member of the ruling class I see no problem. Wait a minute....¥1,000 an hour think I will stay in bed.

5 ( +6 / -1 )

Simple conclusion. We need more government aid and businesses will never bankrupt!

3 ( +5 / -2 )

The bankruptcies may come later.

4 ( +5 / -1 )

News flash! Corporations love SOCIALISM (when it butters their bread).

7 ( +9 / -2 )

My tax money. Would prefer a functioning medical system. And business sink or swim on their own merits. Why on earth do I have to pay for their failed cash hording Buisness plan. Makes no sence. Give money to family's not suits occupied by bananas.

-1 ( +2 / -3 )

Not “ saved” but delayed, on lifesupport but with irreversible damage to their vitale systems. That, and the surreal bubble in the stock market make for recession we have never seen in our life time. Predicting the exact time of that bubble bursting is key for survival of many more companies.

4 ( +5 / -1 )

Right, just further proof that the large corporations have been hoarding cash for years!

7 ( +10 / -3 )

Capitalism needs an active and engaged government for its mere survival.

1 ( +6 / -5 )

I'm damn glad to hear that the corporations are doing just fine. /s

Now tell the about how the local mom and pop stores and restaurants fare...

4 ( +8 / -4 )

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