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Thursday, 17 August 2017

Bailouts for companies at the expense of the middle class

We have our very own wannabe Bernie Sanders: Government initiatives to support private sector companies are tantamount to the government subsidizing private corporations at the expense of the middle class, writes Mohamed El Hawary for Al Borsa. He cites initiatives including the Contractors’ Compensation Act and the central bank settling LC debt spikes incurred following the EGP float as examples of this subsidizing of corporations. El Hawary is not altogether opposed to helping companies hit by hard times (even citing the bailouts in the US in 2008). But he believes the government has taken it too far and has gotten private companies used to getting handouts from the state.

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