The way American corporations disgraced. Cause of total unemployment is found in the US

The US Federal Reserve did everything to help corporations, but did not take into account the fate of hundreds of thousands of ordinary workers.

The way American corporations disgraced. Cause of total unemployment is found in the US

This was reported by the Bloomberg agency.

According to media reports, the government has indeed fulfilled its promises to big business. When the Fed provided corporations with a simplified borrowing program, they borrowed a record $1.1 trillion. Among the borrowers were the automaker Toyota Motor, the marketing firm Omnicom Group, the cinema chain Cinemark Holdings, and Sysco Distribution Corporation. Having lent billions, they directed money to pay dividends to shareholders, simultaneously massively reducing workers. Only Sysco, as it was reported in the agency, fired over 20 thousand employees.

“Companies did not oblige them to behave differently, but their actions cast doubt on the extent to which the promise of the US central bank to acquire corporate debt will help preserve US jobs”, – the publication said.

If the Wage Protection Program, designed for small businesses, implied loans in exchange for maintaining jobs, then neither the Fed, nor the Ministry of Finance set similar conditions to large corporations. As a result, the scale of unemployment at the height of the corona crisis broke records.

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