The government will support the most affected by the coronavirus industries

At a meeting with deputy ministers, the Prime Minister Mikhail Mishustin announced the government’s plans to support the most affected sectors of the economy due to coronavirus. Among them are transport, tourism, as well as entertainment and catering industries, Kommersant reports. The Prime Minister also ordered the Ministry of Industry and Trade and other ministries to monitor the financial condition of the backbone enterprises of the Russian Federation.

Mikhail Mishustin knows how to save the economy
Mikhail Mishustin knows how to save the economy

Priority support will be provided to affected sectors within the framework of the anti-crisis plan and through measures to support small and medium-sized enterprises (SMEs). In particular, they will freeze all payments on loans already taken by SMEs for six months. Also, 1.5 billion rubles will be allocated from the reserve fund for cost compensation to airlines.

“In addition, the list includes organizations of additional education, non-governmental educational institutions and, of course, the entire sphere of household services – dry cleaning, hairdressing salons, repair shops, and other enterprises,” the Prime Minister said.

The business insists on canceling taxes instead of deferrals for the industries affected by COVID-19 and expanding benefits on other tax payments, including halving the personal income tax rate. Support was also requested by the IT industry.

For almost thirty years of market reforms and the accompanying deindustrialization, the bourgeois government has used almost the same methods of “saving” the economy: “injecting” money directly from the budget and comprehensive support for lending. This did not help anyone: neither machine tool building, nor light industry, nor electronics manufacturing, nor agricultural machine building.

The ruins of Volgograd tractor plant
The ruins of Volgograd tractor plant

Will cash injections save restaurants, hairdressers and dry cleaners? It does not seem so. Even without the coronavirus factor, government support for small and medium-sized businesses has not been effective.

Moreover, in the economic system where the means of production are owned by private people, money allocated by the government usually “dissolves” in the pockets of the owners of these means of production. Therefore, no matter what “support measures” the bourgeois government takes during periods of crisis that are unavoidable for capitalism, workers will face massive reductions, rising unemployment, delayed wages, falling living standards and saving on food.

There is only one way to change the situation: the workers take political power in the country into their own hands, socialize the means of production and build a socialist planned economy.

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