The New York Times, June 18, 2020: Opinion | How to Avoid a ‘Rich Man’s Recovery’
When the United States experienced the collapse of the financial sector in 2008, the federal government took measures that saved banks and stabilized the economy, but it left behind too many others, creating a resentment that festers to this day. Now, amid an even more severe crisis, the Trump administration is making the same mistake, offering programs that may seem neutral and necessary on their face, but which disproportionately aid the wealthy.
To be sure, bold steps were needed to avoid a further economic collapse, and the Federal Reserve deserves credit for choosing action over inaction. But an agency like the Federal Reserve is not designed to consider the distributional consequences of its policies, and its aid to large corporations is a regressive subsidy whose effects on the concentration of wealth in this country will remain with us for a long time — unless the government does something to counterbalance them.
It is often said to be a mistake to bet against America. But betting on America means betting on the whole country, not just its largest, most creditworthy corporations.
