- The former Democratic presidential candidate Andrew Yang and the billionaire “Shark Tank” choose Mark Cuban mentioned the $670 billion Paycheck Protection Program — which Cuban mentioned created three.7 million “zombie companies” — on a current episode of Yang’s podcast.
- Cuban and Yang spoke at size about their concepts to deal with the financial fallout from the coronavirus pandemic, particularly how the US ought to improve demand and cut back prices for small companies.
- They highlighted six areas they thought would assist entrepreneurs regain a stable footing and construct what Cuban known as the “infrastructure for America 2.0.”
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The billionaire entrepreneur Mark Cuban sharply critiqued the $670 billion Paycheck Protection Program in a current podcast episode with the former Democratic presidential candidate Andrew Yang, saying that delays in getting cash to companies had created a brand new set of challenges for Main Street.
“That delay also turned companies into zombie companies,” he mentioned. “A lot of companies are in this Nowhere Land.”
Cuban and Yang spoke at size about a number of concepts to deal with the financial fallout from the coronavirus pandemic, highlighting six areas they thought would assist entrepreneurs regain a stable footing in “America 2.0.”
“We’ve got 3.7 million companies … zombie companies in a lot of respects, and we’ve got to address their problems,” Cuban mentioned. “Until there’s demand for products and services, businesses aren’t going to be able to stay open, no matter how much money you give them.”
Use-it-or-lose-it money to each family
Yang and Cuban each spoke positively about the $1,200 aid checks that have been delivered to taxpayers, however Cuban proposed a extra bold concept that Yang jokingly referred to as “Cuban Cards.”
To stimulate shopper demand, Cuban is proposing a debit card that will get loaded each few weeks with $1,000, with the caveat that you just can not save the cash.
“You have to spend it in 10 days,” he mentioned. “Doesn’t matter what you spend it on, but you have to spend it.”
Partnerships for spending for native companies
When Yang instructed requiring a few of that cash to be used at small companies, Cuban pushed again, saying that federal restrictions like these typically have been too politicized.
The pair did agree that native companies might group up to present a shopper benefit to entice extra Cuban Card spending of their shops.
The pair did agree that native companies might type their very own barter agreements amongst themselves to present incentives and rewards to entice extra Cuban Card spending of their shops.
Opportunity in new industries
Cuban mentioned whilst companies began to bounce again, “they’re not going to be able to hire enough people fast enough to really create the groundswell of employment and change the game.”
To get began, although, Cuban instructed tapping into nationwide service applications like AmeriCorps to assist prepare and make use of individuals in “high-compassion jobs.”
New authorities contracting alternatives would come up from the want to handle and analyze the huge quantity of information that may come out of federal tracking-and-tracing efforts.
Reduce the value of healthcare
Increasing demand would assist one aspect of the equation, however the US might go additional by reducing prices too. To actually kick issues off for small-business employers, the value of healthcare would want to come down — and the “Shark Tank” choose has concepts.
Cuban mentioned he was not totally on board with a single-payer system however was main a group that is wanting right into a “hybrid environment” that preserves employer-based choices and widens eligibility for a government-based plan modeled off of Medicare.
This strategy would use Medicare pricing to obtain decrease prices for healthcare throughout the board and cut back the want for small companies to present an costly profit for his or her staff.
$15 minimal wage
Yang wasn’t ready to persuade Cuban to take part the name for a common primary earnings. Cuban argued that if employers knew staff have been receiving no-strings-attached checks each month, they might justify paying staff much less.
“One of the things that terrified me and would have embarrassed me mightily … is if any of my companies were on government assistance,” Cuban mentioned, referring to firms that encourage their staff to apply for welfare applications slightly than pay a dwelling wage.
Instead, Cuban mentioned he was in favor of elevating the federal minimal wage to $15 an hour, which might assist stage out a few of the state-by-state disparities that he mentioned truly damage small companies greater than massive ones, since bigger firms can extra simply cross state traces to discover lower-priced labor.
‘Infrastructure for America 2.zero’
Beyond the enterprise alternatives to deal with the quick wants of the public-health disaster, Cuban says the US has a generational alternative to construct “infrastructure for America 2.0.”
“The way we’ve been talking about infrastructure is just to improve those railroads and bridges and highways,” he mentioned. “I think infrastructure should incorporate those, but I think infrastructure needs to think bigger.”
A significant focus for this effort must be in areas like robotics and 5G cell networks — areas the place the US is lagging behind rivals like China, Germany, Japan, and Russia. Cuban mentioned it is all the time good enterprise apply to be taught out of your rivals’ strengths.
“In any business, you always have to ask, how’s your competition going to kick your ass?” Cuban mentioned.