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リチャード M.ナッシュRichard M. Nash

Government Assistance Policies that Penalize the Honest

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公開日:2021年1月29日

Recently, the Tokyo Metropolitan Government announced that, as part of their request for eateries and pubs to close at 20:00, they will be supporting them with a cooperation payment of \60,000 per day per establishment. Looking at how the central and local governments come up with this assistance program or that cooperation payment scheme, I have to scratch my head. Whether a business is small or large, there are those, through effort, that have been profitable while there have been those, through ineptitude, that could only suffer losses. So, I wonder and fail to understand why it is fair to offer both types of businesses an uniform amount of \60,000 per day per store.

Why would it be fair for a mom-and-pop Oden shop and a high-end restaurant with 20 employees to receive the same maximum amount of \1.86 million per month in assistance? The owners of the small Oden shop that could earn at most \30,000 every night would be ecstatic to see their income double. The owner of the restaurant that had be seeing a nightly revenue of \300,000, on the other hand, will be hard-pressed to lay off workers to stave off bankruptcy.

There must be a better, fairer method. I believe that it would be much fairer to base the assistance payments on, say, 60% of the immediate 3-year average of the profits reported, and paid, in a business’ annual tax return. Considering the current dire economic circumstances, I do not feel it would be necessary to save perennial loss-makers. These businesses should be allowed to fail. Their employees could be picked up by those businesses that have been successful and profitable before the pandemic struck, and which should be saved. Is my way of thinking too harsh?

 

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