By Letting Small Businesses Fail, the State Is Handing Power to Corporate Giants | Novara Media
Part of the problem facing small businesses is that they are finding it much harder to gain access to state-provided emergency loans than their larger peers. The Chancellor has made available £5m worth of Coronavirus Business Interruption Loans for small businesses through the UK’s pre-existing network of retail and commercial banks.
But small business owners are struggling to get through to their banks amid heightened demand for banking services. Many of those that do get through have their loan requests denied, despite their businesses having been in good health before the crisis hit. Others are being approved, but at extortionately high interest rates – some as high as 30%.
Over the last decade, extremely loose monetary policy has made borrowing – whether for government, or households and businesses – cheaper than ever. In the context of stagnant productivity and low growth, many businesses have taken advantage of this cheap debt just to get by – total credit to UK businesses reached 81.5% GDP in the third quarter of 2019, far before the crisis hit.
Same strategy in the USA. Big globalist corporations will benefit by gaining market share from the pandemic shut down, and small companies will suffer and/or die.
Follow the money.
The lockdown is not necessary. Five nations are doing very well by not locking down everything and doing a prudent pandemic response instead.