CEO DATELINE - Business groups push plans to revitalize industries, U.S. economy
CEO DATELINE - Business groups push plans to revitalize industries, U.S. economy
- March 17, 2020 |
- Walt Williams
With a global recession looking more likely—and a few economists even talking about the possibility of a depression—various associations are pitching proposals for the federal government to help their industries and the U.S. economy weather the coming storm.
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One of the larger proposals was announced Monday when Airlines for America asked for what would equate to a $60 billion bailout package for the U.S. airline industry. The aid would come in a mixture of grants, loans and tax relief. The association was blunt in its assessment about the effects of the coronavirus pandemic on airlines, saying that with the decline in travel, "the current economic environment is simply not sustainable."
"This is a today problem, not a tomorrow problem. It requires urgent action," A4A CEO Nick Calio said in a statement.
At the same time, the U.S. Chamber of Commerce listed three actions it said was needed to aid businesses and mitigate job losses:
- Canceling all payroll taxes paid by employers for March, April and May.
- Expanding and streamlining the Small Business Administration disaster loan program.
- The creation of credit facilities to provide loans and loan guarantees to employers with more than 500 employees.
"We need big, bold policy moves now to ensure businesses continue to function, meet payroll, and keep American workers employed," Chamber CEO Tom Donohue said in a statement. "Similar to major natural disasters of the past, the Coronavirus will have a significant economic impact—and we must act accordingly."
Seeking relief on gathering restrictions
In addition to advocating for financial assistant and tax relief, other groups have sought exemptions for their industries from state and local government restrictions on large gatherings. The Consumer Brands Association on Monday asked that manufacturers of "essential products" be exempted from gathering laws. The Natural Products Association also argued for health stores to remain open during the current crisis.
"It is imperative that essential businesses such as health-food stores that provide nutritional supplements and other health and wellness products remain open for business," NPA CEO Daniel Fabricant said in a statement. "Local businesses are an essential resource for Americans in times like these, especially people at risk, who need access to neighborhood stores."
Sunday, the Centers for Disease Control and Prevention recommended organizers postpone events with more than 50 people. The Meetings Mean Business coalition, which represents several travel-related businesses and associations, issued a response saying the proposal was not one its members wanted to see but one they intend to follow.
"We understand the months—even years—of work that precede major meetings and we recognize the incredible benefits that these gatherings bring to people, businesses and the economy," the coalition said in a statement. "Yet even as meetings are being canceled and postponed, employees at every level are continuing to donate food, time and free public services. There is perhaps no greater testament to the industry's value and collective strength."
On Monday afternoon, President Donald Trump advised people to avoid gathering in groups of 10 or more.
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