But while the high-stakes game of choosing how to support the U.S. economy is a difficult decision in any year, the added task of doing so in an election year makes it particularly thorny.
“[The question is], why should people at the top be bailed out when people at the bottom are struggling. And how are you picking winners and losers,” said professor Matt Dallek, a political historian at George Washington University.
As winners go, the airline industry is likely to draw the most bipartisan support, as the sector is critical to the U.S. economy. It employs 750,000 people and allows travel throughout the nation, including local hubs. Its fall would crush confidence in the U.S. economy.
It also has politicians on both sides of the aisle who have traditionally supported the industry. Democrat Sen. Amy Klobuchar hails from Minnesota, home to Delta’s hub at Minneapolis-St. Paul International Airport. Missouri’s Sen. Roy Blunt, a Republican, helped draft the legislation that saved the airline industry in the fallout of the 9/11 attacks.
Still, the industry has angered some lawmakers and consumers as it has cut legroom and added myriad fees to increase profits. The biggest players have also consolidated their grip through a decade of mergers. U.S. airlines last year reported their 10th straight year in the black, a departure from the boom-and-bust cycles that plagued the sector for decades. Their balance sheets are much stronger than the debt-saddled ones during previous crises, analysts have noted.
Any offer to aid the industry as individuals suffer is likely to bring those complaints back to the forefront.
“They have money in the bank, they’re secure,” said Alvin Lewis, owner of Alvin’s Limousine Services. Lewis runs a car service in Austin, Texas. His business was hit hard when South by Southwest canceled its annual festival and conference there.
“For me, I’m a small-business owner. In the last four weeks, I haven’t made any money at all. I had 300 cancellations for this month and I’m stuck right now – I can’t make the payment on my cars, my bills are piling up – I’m out of business it looks like.”
Lewis’ perception conflicts with that of the airlines’ assessment of their current woes, but it highlights the difficult line politicians must walk in order to manage the crisis in an election year.
Both parties have said they will push to support small businesses in further aid packages.
Article source: https://www.cnbc.com/2020/03/16/coronavirus-stimulus-white-house-grapples-with-which-industries-deserve-aid.html