In 2020, the CARES (Coronavirus Aid, Relief, and Economic Security) Act established the Paycheck Protection Program, creating a $350 billion kitty of forgivable loans for small businesses. The intent was pandemic relief for recipients to keep workers on the payroll and stay open in the near-term. The massive bailout program was rushed out, and hidden in a veil of secrecy, with the Treasury Department declining to disclose how it spent the funds or who the PPP recipients were. Eventually, the recipients were revealed – but only vague dollar ranges instead of specific awards were published. For example, records show that a family-owned shipping business related to McConnell’s wife, Secretary of Transportation Elaine Chao, received a loan somewhere between $350,000 and $1 million. Chao disavowed any connection to the business or knowledge of the loan, although the New York Times reported that in the past, she had repeatedly used her official position to bolster the business. Their net worth is estimated between $25 and $35 million dollars. Meanwhile, the slipshod administration of the loan program opened the door to massive fraud, waste and abuse, with the Government Accounting Office declaring “the limited safeguards and lack of timely and complete guidance and oversight planning have increased the likelihood that borrowers may misuse or improperly receive loan proceeds.”. Trump and his son-in-law Jared Kushner received million$, along with many in their orbit – even a golfing buddy.
Other friends of Trump made out like bandits – and evangelicals were especially keen on cashing in on free government money to the tune of $17.3 million. Joel Osteen’s megachurch received a $4.4 million check. Members of the President’s evangelical advisory board were exceptionally well-rewarded for their loyalty, with Paula White’s ministry receiving between $150,000 and $350,000, and Robert Jeffress’ church getting between $2 million and $5 million. Prestonwood Christian Academy, associated with Trumpist Jack Graham, received between $2 million and $5 million – but reported zero jobs being retained. There were numerous other ministries tied to the President that reaped a financial bonanza.
Like Daystar Television Network’s Marcus Lamb, who bought a Gulfstream V just two weeks after receiving a $3.9 million PPP loan. Ostensibly an operating expense to spread the Gospel, Inside Edition reported it was used like an airborne RV for family beach vacations. Lamb’s organization denied using the PPP loan to buy the luxury aircraft, although hastily repaid the loan.
There are so many questions here that nobody is asking. What did America buy with this bailout? Should taxpayers be obliged to underwrite debt-free ministries with plenty of cash to maneuver? These figures are so gargantuan that one questions why such an immense budget? Like the ministry leaders pulling down million dollar salaries – can’t they cinch up their belts a bit to keep the lights on, like most American households are forced to do. And why, oh why, are they considered too big to fail?
In 2008, when General Motors desperately needed financial aid to continue, the government authorized emergency loans to continue paying bills and making payroll, but tied strings to the bailout. GM would have to go through a bankruptcy reorganization, auction off assets to raise cash, reduce management ranks and cut executive pay. The CEO was ousted, shareholders like me were left penniless, and a new company emerged from bankruptcy to continue making the same old crappy cars.
The point is, if you are too big to fail, you should nevertheless pay a price for surviving on the public dole. The government doesn’t operate on grace, and everyone else shouldn’t be forced to keep a bunch of religious goofballs living the high life. The government had the leverage that Chuck Grassley wished he had in his 2008 investigation of tax-exempt religious organizations. Maybe we would have seen some genuine reform of tele-vangelism. Instead, we got shafted by people who shoot pool with some employee here.
I could have ended there, but can’t resist this apt quote about virus relief from Mitch McConnell: “Socialism for rich people is a terrible way to help the American families that are actually struggling,”