VC and Entrepreneur Charlotte Walker: How CARES Is Blank Check to Corps & May Crush Small Businesses
The CARES act, otherwise known as the stimulus bill, has been very much in the news. But as usual, few media outlets have read the text and explained the fine print.
This two-trillion dollar historic allocation of taxpayer money has some startling realities embedded in it.
Charlotte Walker, the distinguished startup advisor and VC, explain in this must-watch video, how dun reds of BILLIONS of dollars are being handed over to companies that would otherwise possibly fail — but very little of that money is going to workers themselves, or to smaller businesses.
In early drafts, moreover, a tiny percentage of the funds were being allocated to health care and hospitals; the number went up as this flaw was examined and is better now — but still is dwarfed by the blank check to giant corporations.
Walker explains in detail how the CARES act also creates drop-dead conditions for small businesses; she points out that small businesses are the engine of the economy and the source of innovation, and that when these are starved out, the entire economy suffers. Walker details how small businesses already operate under financing conditions that are burdensome, compared to highly funded startups or corporations, that have access to funding from a completely different financial ecosystem. And DailyClout can confirm that this bill that is so touch on small businesses while bailing out — yet again — giant corporations, is consistent with bills that pass monthly and have done so for the last two years, with little media coverage or fanfare, that place burdens and restrictions on small businesses in contrast to big businesses and vast corporations.
A must-watch explanation of how our financial system works — and of the serious flaws in the CARES act.