Kevin O'Leary
Scott Mlyn | CNBC
As stimulus negotiations in Washington continue to make little headway, leaving millions of Americans steeped in uncertainty amid the ongoing coronavirus pandemic and unprecedented job losses, Kevin O'Leary has some ideas as to what the next move should be.
The $1,200 stimulus checks sent to Americans in April starting in April weren't a good idea, O'Leary, celebrity investor and chairman of O'Shares ETFs, believes. He advises against a second round, and has outlined what he thinks should be deployed instead.
"No they're not" useful, O'Leary, a judge on ABC's "Shark Tank," told CNBC's "Capital Connection" on Wednesday. "They are very blunt instruments, and there is no means test."
Elaborating, O'Leary described the U.S. as having "have and have not" sectors, with some currently at a serious disadvantage. If certain industries need to be pared down to meet the "new normal" of life during and after a pandemic, it makes more sense to let the industries take the hit while directly offering checks to the individuals affected, he argued.
Airlines, many analysts say, are one of these industries.
"Even if tomorrow there's a vaccine and you could inoculate the entire population, most businesses have figured out they can spend 20% less on business travel because they have technologies like the one we're using right now to communicate with customers," O'Leary said, speaking via videoconference.
"And so the airline industry is very under favored why bail out a zombie business? Airlines go out of business all the time. Let them go bankrupt, and let the weaker airlines be managed by the stronger ones after the asset transfer."
Stimulus, he stressed, should then be targeted toward people who are unemployed and need the funds, rather than a blanket check mailed out to everyone in the country, most of whom are still employed.
"It's better to actually pay the employees a 14 month, call it $400 unemployment check, as opposed to just sending out $1,200 once or twice to everybody when you know 80% of the population still has a job."
Forty-three commercial airlines have already folded so far this year as air travel reels from the hardest hit in its history. Some 485 planes have been idled due to the airline failures, according to travel data company Cirium. This stands in stark contrast to what had previously been 10 years of consistent demand expansion for the sector, and airline CEOs are pleading with their governments for bigger bailouts even as industry experts predict the sector won't see a rebound to pre-pandemic levels until at least 2024.
Numerous commercial airlines around the world have received huge bailout packages while slashing services and laying off huge swathes of workers.
After receiving a $25 billion industry-wide bailout in March under the CARES Act, commercial airlines in the U.S. are now pressing Congress and the White House for renewed funding of the same amount, assistance they say is necessary to cover payrolls and prevent tens of thousands more from getting laid off.
But many economists agree with O'Leary and oppose more bailouts, arguing that there is no point spending taxpayer money to keep airlines running at pre-pandemic capacity when travel has been so downsized. Instead, they say, the industry needs to face reality and restructure.And House Speaker Nancy Pelosi has refused the notion of helping airlines without a broader relief package for the country, one of the many sticking points that has kept stimulus progress frozen for months.
So what should the stimulus funding ultimately accomplish? For O'Leary, it's whatever makes the economy more efficient and adapted to the rapid industry transformations underway thanks to the pandemic and ensuing work-from-home boom.
"All of this stimulus money at the end of the day should be towards this transition that's occurring in the U.S. and everywhere else in the world a giant digital pivot," he said, adding that companies already thriving thanks to their digital platforms like e-commerce don't need any stimulus help.
"Businesses that can work online, sell direct to their customers, the Nikes of the world are very successful. Why should the government be providing capital to them when they don't have to? Just the sectors like travel, like entertainment, like food services, like cruise lines, like the wedding industry they're all wiped out. That's 20% of the economy. Give them unemployment checks while those employees figure out where to go next."
Read more here:
Kevin O'Leary says give stimulus to the people who need it, not 'zombie companies' - CNBC
- The Cranberries' Zombie - the story behind the incendiary song - Louder - April 22nd, 2024
- Chris Riddell on the zombie Tory government falling apart at the seams cartoon - The Guardian - April 22nd, 2024
- Zombie grave dating back 4,200 years discovered in Germany, photos show - Miami Herald - April 22nd, 2024
- Steam zombie survival game leaves early access 11 years on, and you've got one week to get it cheap - PCGamesN - April 22nd, 2024
- "Zombie" cicadas with STDs are coming to Virginia - Axios - April 22nd, 2024
- Deathtroopers is the Star Wars zombie horror game I never knew I needed - PC Gamer - April 22nd, 2024
- Zombie Army VR Reveals The Story In Latest Trailer - Bleeding Cool News - April 22nd, 2024
- Where Infected "Zombie Cicadas" In The US Will Emerge In 2024 - TheTravel - April 22nd, 2024
- Zombie anti-abortion laws are menacing American women - The Hill - April 22nd, 2024
- Joe Manganiello to Zombie It Up in Mountain Man Adaptation - Reactor - Reactor - April 22nd, 2024
- Frozen Soul Covered White Zombie and It Rules - MetalSucks - April 22nd, 2024
- Arizona's abortion ban could bring zombie laws back to life in other states - Fast Company - April 22nd, 2024
- Arizona abortion ban shows the dangers of reviving zombie laws - MSNBC - April 22nd, 2024
- Zombie fires smoldering near Canadian oil and gas wells threaten production following 2023 wildfires - WorldOil - April 22nd, 2024
- You'll Never Guess Who Doesn't Want to Repeal a Zombie Abortion Ban - The New Republic - April 22nd, 2024
- Zombie Army VR: New trailer gives a glimpse of the gruesome campaign - MIXED Reality News - April 22nd, 2024
- Zombie Tests: Is the SAT Back From the Dead? - Fair Observer - April 22nd, 2024
- How likely are you to survive a zombie apocalypse in Connecticut? You may want to travel north - Hartford Courant - April 22nd, 2024
- Missouri Reports 162 New Cases Of Deer 'Zombie' Disease In 2023 - Lake Expo - April 22nd, 2024
- Zombie Fires Pose Looming Threat to Canada's Oil and Gas Infrastructure - OilPrice.com - April 22nd, 2024
- Rob Zombie Presenting House on Haunted Hill Soundtrack on Vinyl - ComicBook.com - April 22nd, 2024
- Take on Zombie Stormtroopers In This Star Wars Fan Game - IGN - April 22nd, 2024
- The Best Zombie Game of 2023 Has a New Expansion Out Now - Esports.net News - April 22nd, 2024
- Frozen Soul Debuts Frosty Rendition of White Zombie's 'Creature of the - Knotfest - April 22nd, 2024
- 'Dawn of the Dead' at 45: A Zombie Love Affair That Never Died - The New York Times - April 12th, 2024
- Hyper-sexual 'zombie cicadas' infected with bizarre STD fungus will emerge in US - New York Post - April 12th, 2024
- Zombie malls and other retail centers getting extreme makeovers to keep up with the times - Chicago Tribune - April 12th, 2024
- 'Zombie' drug xylazine found in cannabis THC vapes in UK - BBC.com - April 12th, 2024
- Taxing health insurance: The Republican zombie that refuses to die - Roll Call - April 12th, 2024
- Fungus-infected Zombie Cicadas with hypersexuality to emerge in the US this year: Expert - Hindustan Times - April 12th, 2024
- Zombie Classic Dawn Of The Dead Coming Back to Theaters for 45th Anniversary - MetalSucks - April 12th, 2024
- E-News | 'Zombie cicadas' infected with sexually transmitted fungus expected to emerge this year in parts of US - WVU ENews - April 12th, 2024
- Deadly Zombie Sedative Penetrating The U.K.s Illicit Drugs Market - Forbes - April 12th, 2024
- Seattle Police warn that base ingredient in 'zombie drug' tranq is being sold as standalone pill - FOX 13 Seattle - April 12th, 2024
- Opinion | Today's Opinions: Haunted by zombie law and thrown into abortion time-travel - The Washington Post - The Washington Post - April 12th, 2024
- Rob Zombie Teases 'House of 1000 Corpses' Book With Rare Photos, Original Script and More! - Bloody Disgusting - April 12th, 2024
- Zombie malls getting extreme makeovers to keep up with the times - Detroit News - April 12th, 2024
- 2000s Horror Fantasy Is One Of The Most Unique Takes On The Zombie Genre - Giant Freakin Robot - April 12th, 2024
- Mysterious 'Zombie Neurons' Unlock Secrets of Learning in The Brain - ScienceAlert - April 12th, 2024
- Zombie SKUs: What They Are, How They Work & Results - JumpFly PPC Advertising News - April 12th, 2024
- Arizona Reviving Its Zombie Abortion Ban Is Trump's Doing - The Cut - April 12th, 2024
- Hyper-sexual "zombie cicadas" that are infected with sexually transmitted fungus expected to emerge this year - CBS News - April 12th, 2024
- Should we be concerned about zombie cicadas? - WGN Radio - Chicago - April 12th, 2024
- You need to play this underrated zombie shooter before it leaves Xbox Game Pass - Digital Trends - April 12th, 2024
- End the 'zombie' Comstock Act - Star Tribune - April 12th, 2024
- OPINION - Flesh-eating zombie narcotics are on our streets Britain is badly losing its war on drugs - Yahoo News UK - April 12th, 2024
- What Is Xylazine - The Flesh-Eating 'Zombie' Drug Linked To 11 Deaths in The UK? - Times Now - April 12th, 2024
- Zombie Cicadas To Emerge In Virginia: What To Know - Patch - April 12th, 2024
- What Is "Zombie Drug" Gripping The UK? - NDTV - April 12th, 2024
- OJ Simpson's Final Film Will Resurrect His Naked Gun Character - As A Zombie? - Looper - April 12th, 2024
- Flesh-eating 'zombie drug' sweeping US is linked to 11 UK deaths - The Telegraph - April 12th, 2024
- Flesh-rotting 'Zombie drug' tranq raises alarm in UK - The Times of India - April 12th, 2024
- Zombie Cicadas To Emerge In GA: What To Know - Patch - April 12th, 2024
- What was the first-ever zombie movie? - Far Out Magazine - April 12th, 2024
- Even Will Smith Couldnt Save Zombie Survival Game Undawn, Which Flopped Spectacularly - IGN - March 24th, 2024
- Rob Zombie Recommends This Surprisingly Wholesome Comedy - Dread Central - March 24th, 2024
- Army Writing and the Zombie (Noun) Apocalypse - Modern War Institute - United States Military Academy West Point - March 24th, 2024
- Fatal Fury's Mai Shiranui Is In This Zombie Survival Game For Some Reason - Time Extension - March 24th, 2024
- Should you be worried about 'zombie deer'? | College of Public Health - George Mason University - March 24th, 2024
- 'Scooby-Doo on Zombie Island' Scares Its Way to Blu-ray for the First Time This Spring - Collider - March 24th, 2024
- Rob Zombie hates my guts: GWAR's Dave 'Oderus Urungus' Brockie was a genius, and here's an interview that proves it - Louder - March 24th, 2024
- In the fight against gun violence, Rep. Frost Introduces the Destroy Zombie Guns Act - The Apopka Voice - March 24th, 2024
- Elfriede Jelinek's 'The Children of the Dead' is a historical zombie novel - The Washington Post - The Washington Post - March 24th, 2024
- Germany's Zombie Government Is Fueling the Far Right - The Atlantic - March 24th, 2024
- Zombie Survival Game Undawn Has Crashed And Burned According To A Reuters Report - MMOs.com - March 24th, 2024
- Will Smiths Zombie Game Has Been Hit Harder Than Chris Rock at the Oscars Its Astronomical Budget Was ... - imdb - March 24th, 2024
- Scooby-Doo On Zombie Island / Return to Zombie Island Blu-ray (Warner Archive Collection) - Blu-ray.com - March 24th, 2024
- Registration almost here for Dothans annual Zombie 5K Chase - WDHN - March 24th, 2024
- Zombie magic and gambling club Magic Island will come alive again this summer - Houston Chronicle - March 24th, 2024
- Undawn | The $140m zombie survival game starring Will Smith that bombed while nobody was looking - Filmstories - March 24th, 2024
- After 4 years, a cult classic zombie horror manga from Ga-Rei's creator is finally getting an official English release - Gamesradar - March 24th, 2024
- Will Smith's Zombie Game Has Been Hit Harder Than Chris Rock at the Oscars - Its Astronomical Budget Was ... - FandomWire - March 24th, 2024
- "The game literally no one knew existed": The Will Smith Zombie Survival Game is Reportedly a Big Flop and Fans Are ... - FandomWire - March 24th, 2024
- Zombie-palooza --- Get to the biggest undead music event in the latest Dead Island 2 expansion: SoLA - Gaming Trend - March 24th, 2024
- Bournemouth University medical students treat 'zombie attack' in mass training simulation - The Tab - March 24th, 2024
- Zombie car factories on the rise in China as buyers opt for EVs - Financial Times - March 16th, 2024
- Hey, Remember When Rob Zombie Was Going To Direct THE CROW 3? - FANGORIA - March 16th, 2024
- New Walking Dead Twist Shows How The Zombie Outbreak Will Finally End - Screen Rant - March 16th, 2024
- Candid conversations from death row with The Zombie Hunter - Arizona's Family - March 16th, 2024
- Zombie! The Musical - REVIEW - City Hub Sydney - March 16th, 2024
Reviewed and Recommended by Erik Baquero