Mexico's President Has No Interest in Bailing Out Big Companies and Banks, Says the Poor Must Be Rescued
exican President Andrés Manuel López Obrador has ruled out the
idea of bailing out big companies
idea of bailing out big companies
and banks as the coronavirus pandemic takes its toll on his country,
arguing that the government
arguing that the government
must instead focus on supporting the poor.
While Mexico thus far has only 367 confirmed cases of coronavirus,
the country is already
the country is already
feeling the economic impact of the global pandemic. López Obrador
discussed this publicly on
discussed this publicly on
Monday, saying his government's efforts to address the crisis
would focus on supporting the
would focus on supporting the
economically disadvantaged, not wealthy businesses.
"If we have to rescue someone, who do we have to rescue? The
poor," the Mexican president said,
poor," the Mexican president said,
Reuters reported. He said he would reveal more specific details
about his government's plan on
about his government's plan on
Tuesday.
"No more rescues in the style of the neoliberal period, that provided
for banks, big companies.
for banks, big companies.
They shouldn't even be thinking that there will be tax forgiveness
or other mechanisms that were
or other mechanisms that were
used before," López Obrador said.
Later, he posted an optimistic message to Twitter. "We will
move forward.
move forward.
We have the strength of our people, sufficient public finances,
and the knowledge of
and the knowledge of
our health specialists," the president wrote.
Meanwhile, north of the border in the U.S., Democrats have
accused Republicans
accused Republicans
of pushing for a coronavirus economic stimulus plan that
benefits businesses and
benefits businesses and
corporations over workers. Democrats have argued that
any economic assistance
any economic assistance
to companies should come with stipulations that they
should be barred from using
should be barred from using
the funds to buy back stocks. Instead, they want the
companies to be required to
companies to be required to
use the funds to keep employees on payroll as the
economic crisis unfolds.
economic crisis unfolds.
"Why wouldn't it be better for our national economy if,
instead of buying back stock,
instead of buying back stock,
corporations paid all of their workers better wages and
provided good benefits?
provided good benefits?
Why should a company whose pension program is
underfunded be able to buy back
underfunded be able to buy back
stock before shoring up the pension fund?" Democratic
Senate Minority Leader
Senate Minority Leader
Chuck Schumer and presidential candidate Bernie Sanders
wrote Monday in a
wrote Monday in a
New York Times opinion piece.
Although Mexico's president may be drawing praise for siding
with the economically
with the economically
disadvantaged over banks and businesses, he has also
drawn criticism for downplaying
drawn criticism for downplaying
the threat of the pandemic.
"Don't stop going out—we're still only in phase one,"
López Obrador said in a
López Obrador said in a
Sunday video message. "If you have the means to do it,
continue taking your
continue taking your
family out to restaurants and diners. That's what will
strengthen the economy."
strengthen the economy."
The advice from the Mexican leader goes against the
stringent social-distancing
stringent social-distancing
steps governments around the world have taken to counter
the virus's spread.
the virus's spread.
Many countries, as well as states and municipalities in the
U.S., have shuttered
U.S., have shuttered
all nonessential businesses and encouraged, or ordered,
residents to remain in
residents to remain in
their homes in an effort to prevent the outbreak from growing.
