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Illustration: Sarah Grillo/Axios

The White House has pledged to spend "whatever it takes" to win the fight against the novel coronavirus, and to that end has put forward a $1 trillion bailout package.

How it works: Half the sum will be spent directly, in the form of checks sent to American households. Details are still being worked out, but there will be an element of means testing, with poorer Americans getting more money.

  • That makes sense, because richer households are already getting an involuntary cash injection of their own, in the form of foregone consumption expenditures.
  • A personal datapoint: I looked at my 2019 credit card summary, and fully 40% of my spending went toward travel, entertainment, and restaurants. My enforced frugality on those fronts will be worth well over $1,000 to me by the time I'm out and about spending again.

The other half of the bailout goes to corporations, who already received a trillion-dollar giveaway in the form of the 2017 tax cut.

  • The corporate bailout isn't a cash grant, though. Instead, it takes the form of secured loans. That's a smart way of giving businesses the liquidity they need to keep on operating, without the money going to shareholders or even bondholders.

Small businesses will also be eligible for government-guaranteed loans — but it's not obvious how they're supposed to be able to repay them.

  • One good idea comes from Adam Ozimek and John Lettieri of the Economic Innovation Group. They suggest that the loans should amortize over 20 years, with a three-month grace period, and carry an interest rate of 0%. The loans should also be available for much more than just maintaining payroll, which is the focus of the Treasury Department's proposal.
  • Another good idea comes from Toby Scammell, the CEO of Womply, a payments data company. Take every small business merchant account in America, and simply deposit their average daily volume into their bank account every day until the crisis is over. The money then would be repaid over time with an automatic 5% charge on new inflows.

Why it matters: As my credit card gathers dust, businesses around New York and the world are losing income, unable to make payroll. The Danish government has offered to pay as much as 75% of the wages of employees in businesses hit by the coronavirus. That, or something even bigger, would help a lot of U.S. businesses weather the present storm.

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Boeing gets huge 737 Max order from Ryanair, boosting hope for quick rebound

Ryanair low cost airline Boeing 737-800 aircraft as seen over the runway. Photo by Nik Oiko/SOPA Images/LightRocket via Getty Images

Dublin-based Ryanair said it would add 75 more planes to an existing order for Boeing's 737 Max airplanes, a giant vote of confidence as Boeing seeks to revive sales of its best-selling plane after a 20-month safety ban following two fatal crashes.

The big picture: Ryanair's big order, on the heels of breakthrough vaccine news, is also a promising sign that the devastated airline industry might recover from the global pandemic sooner than expected.

Ben Geman, author of Generate
29 mins ago - Energy & Environment

Trump sets auction for Arctic refuge drilling rights before Biden takes office

Photo: Win McNamee/Getty Images

The Interior Department on Thursday said it will auction oil drilling leases in Alaska's Arctic National Wildlife Refuge in early January.

Why it matters: The procedural step would make it harder for President-elect Joe Biden to thwart drilling in the region, even though any actual development is years away.

Rep. Sean Patrick Maloney elected chair of House Democrats' campaign arm

Rep. Sean Patrick Maloney. Photo: Tom Williams/CQ-Roll Call, Inc via Getty Images

Rep. Sean Patrick Maloney (D-N.Y.) on Thursday was elected chair of the Democratic Congressional Campaign Committee for the 2022 cycle, narrowly defeating Rep. Tony Cardenas (D-Calif.) 119 to 107, Politico reports.

Why it matters: Maloney will be tasked with protecting House Democrats' slim majority in 2022 after they underperformed in November's election, losing seats in down-ballot races across the country.