system
Given the following post, respond as if you're commenting on Reddit:
human
Wouldn't it be cheaper/more efficient to pay people, rather than bail out companies?

What I'm reading is that we need to bail out companies in order to maintain jobs. Wouldn't it be far more efficient just to pay a UBI-type thing? (Note: I'm not advocating UBI *per se*, rather as a stop-gap in the current crisis.)

Arguments/my reasoning:

* If businesses are failing because no one is using them (e.g. air travel), then they are going to continue to need bailouts. Thinking bailouts are a one-time thing vs. ongoing UBI-type payments is unrealistic.

* We've already seen companies using the cash to buy back stock.  OK, we can put in legislation to stop that, but paying people would be far more efficient.

* Giving working people money maintains money flow - working people buy necessities, rather than investments.

* Medium/long-term, we would realise either a) we don't need this/that industry or b) this industry needs to be more efficient.  It would provide a huge opportunity for innovation and entrepreneurship as people try to fill the vacuum left by collapsed companies.  

I am a complete econ-novice and my reasoning is probably super-naive, so I'm def here to learn!
gpt
I'll address one point:

>Medium/long-term, we would realise either a) we don't need this/that industry or b) this industry needs to be more efficient. It would provide a huge opportunity for innovation and entrepreneurship as people try to fill the vacuum left by collapsed companies.

The problem is that whole industries are collapsing, not because they are badly run, but because they're faced with an extremely serious natural disaster disaster, an act of god. These companies would be essential to the coming recovery. Case in points is the airline industry. All airlines are going to have practically zero flights for the next few months, but they are still going to incur significant costs. Any business operating in such a situation will collapse- it isn't about efficiency. A random shock has fallen from the sky. It's like allowing all local businesses and companies to collapse after hurricane Katrina.

When the virus eases up and we're trying to rebuild the economy, if the airlines are all out of business, it will take time- for new entrants to set up businesses etc- that will take months, even years. Do you think the American economy can function without airlines for a few months, and recover quickly? Probably not.

The coronavirus isn't some terrible moral failing of capitalism, it's a very very very serious natural disaster that affects just about everyone- if you let the businesses collapse, your recovery is going to be very slow.