this post was submitted on 06 Oct 2024
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Browsing social media, it’s apparent that people are quick to point out problems in the world, but what I see less often are suggestions for how to solve them. At best, I see vague ideas that might solve one issue but introduce new ones, which are rarely addressed.

Simply stopping the bad behaviour rarely is a solution in itself. The world is not that simple. Take something like drug addiction. Telling someone to just stop taking drugs is not a solution.

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[–] [email protected] 4 points 1 month ago (1 children)

The problem with freezing them at their price is that that essentially becomes an interest-free loan to the company that partakes in the system.

The interest needs to be somewhat punitive.

I would say three points above the federal rate compounded daily, and they have to pay off all of the accumulated interest before they can start buying their stocks back.

[–] [email protected] 1 points 1 month ago

I don't necessarily have a problem with it being an interest-free loan, if it serves to keep a business over water and saves jobs. To me that's an appropriate use of taxpayer funds. I'm all for taxpayer subsidies if they are balance-positive to the taxpayer, i.e. jobs are preserved and the subsidies result in meaningful economic activity.

What's bad is when otherwise profitable businesses use threats of job cuts and closures to obtain taxpayer bailouts so they can keep paying big bonuses and shareholder dividends. A lot of that happened through COVID, and the taxpayer threw billions at big business for very little in return. So maybe restrictions on layoffs and such would need to be written into a system like that. The punitive aspects need to incentivise the intended behaviour and strongly disincentivise the wrong behaviour.