- The U.S. government has pumped the U.S. stock market with 1.5 trillion dollars in order to help the stock markets from collapsing from the coronavirus pandemic.
- Most crew members are not American on many large and popular cruise lines.
- Many cruise lines don’t pay federal income taxes.
The U.S. government has pumped the U.S. stock market with a whopping 1.5 trillion dollars in order to help the stock markets from collapsing from the coronavirus pandemic. That is such an immense number that most of us can’t even imagine how much that truly is. The stock markets crashing signals that many businesses, big and small, will be seriously impacted by the pandemic. With everyone staying at home in order to try to slow and stop the spread of the virus, the travel and tourist businesses clearly have some of the hardest-hit companies in terms of the huge loss of revenue. Because of this, many of these companies will get government bailouts. Government bailouts to huge companies can be a controversial subject to many people; especially after the housing market crash in the U.S. in 2008 and the world recession that happened right after it.
Not many people are traveling during the pandemic as many countries have limited traveling. In fact, eight out of ten plane fights will be cut by certain U.S. airlines and the passenger rate for flights, in general, has dropped 90% according to the Dallas Morning News. But these airlines won’t just receive loans freely from a pool of $61 billion. There are certain guidelines they must follow like explaining how they will use the loan and making sure they do have other loans to pay off. While some people believe they should not receive bailouts, many airlines will still be able to do so.
Cruise lines are a luxurious way to travel during a vacation, but fewer and fewer people are going on vacations and many are canceling booked vacations in fear of the virus. Unlike U.S. airlines, cruise lines are most likely not getting a bailout. This is because many cruise lines don’t pay federal income taxes because many of these cruise lines are not registered in the U.S. Similarly, these same companies tend not to hire U.S. workers since it’s cheaper to hire workers from poorer countries. Because of this, President Trump’s Tweet on this issue is not true saying that cruise lines hire many U.S. workers.
You might be really bored sitting at home all day, but going to a theme park is one of the worst things to do during a pandemic due to there being large masses of people everywhere that can help spread the disease very quickly. It’s quite unclear if theme parks will get bailouts, but some voices claim it should only go to the employees of each company. The Washington Post states, “after 20 years of unchecked consolidation, the airlines — along with hotel operators and theme parks — have become disciplined oligopolies characterized by high prices and profits.” For this reason, many people don’t want the government to give bailouts to theme parks.