Columbia | Mr. MD/MBA
GMAT 670, GPA 3.77
Harvard | Mr. Cricket From Kashmir
GMAT 730, GPA 8.5/10
Harvard | The Insurer
GMAT 730, GPA 3.4
Stanford GSB | Mr. Seller
GMAT 740, GPA 3.3
Tepper | Mr. Automotive Strategy
GMAT 670 - 700 on practice tests, GPA 3.3
Wharton | Mr. Researcher
GMAT 700, GPA 3.2
Tuck | Mr. Land Management
GMAT 760, GPA 3.85
McCombs School of Business | Mr. Microsoft Consultant
GMAT N/A, GPA 2.31
Duke Fuqua | Mr. Backyard Homesteader
GRE 327, GPA 3.90
Wharton | Mr. Finance to MBB
GMAT 760, GPA 4.0
London Business School | Ms. Social Impact Consulting
GRE 330, GPA 3.28
London Business School | Ms. Audit Meme
GMAT 710, GPA 3.5
Harvard | Mr. Tech Start-Up
GMAT 720, GPA 3.52
Wharton | Mr. Data Dude
GMAT 750, GPA 4.0
Tepper | Mr. Insurance Dude
GMAT 660, GPA 3.6
Kellogg | Ms. Indian Marketer
GMAT 680, GPA 8.9/10
NYU Stern | Mr. Middle Eastern Warrior
GMAT 720 (Estimated), GPA 3.0
Chicago Booth | Mr. Chile Real Estate
GMAT 740, GPA 3.02
Yale | Mr. Sustainability Manager
GRE 319, GPA 3.52
NYU Stern | Mr. Beer Guy
GRE 306, GPA 4.0
NYU Stern | Ms. Legal Officer
GMAT 700, GPA 4
Stanford GSB | Ms. Education Non-profit
GRE 330, GPA 3.0
Cornell Johnson | Mr. Social To Tech
GMAT 700, GPA 2.7
Wharton | Mr. Mobility Entrepreneur
GMAT 760, GPA 1st Division
HEC Paris | Mr. Business Man
GMAT 720, GPA 3.89
Harvard | Mr. Football Author
GMAT 760, GPA 3.4
Harvard | Mr. Deferred Admission
GRE 329, GPA 3.99

B-School Profs: ‘Bail Out People Before Large Corporations’

On the heels of the passage of a historic $2 trillion government relief bill, leading economists at some of the country’s top business schools have a message to lawmakers: Bail out people before large corporations.

“Bailouts allow investors to keep all the profits in good times without bearing the losses in bad times. Instead, bailouts impose losses on taxpayers, including those most in danger of losing their paychecks,” is the argument more than 150 leading economists make in a letter to Congress.

“Spending taxpayer money to bail out large corporations is a huge mistake. The money should instead be spent on the people who are most affected,” the letter continues. “There are many people who live hand to mouth. Many of them will not be paid if they cannot work. These are the people most affected by the shelter in place orders, and they are the ones the government should be helping.”

‘BAILING INVESTORS OUT IS GROSSLY UNFAIR’

While the letter is noble, it might be too late. Lawmakers in the Senate reached a deal in the early morning hours of Wednesday, March 25; the bill is expected to move quickly through the House and be signed into law by President Donald Trump. The relief package is meant to mitigate sweeping economic issues amid the spread of coronavirus in the U.S. As constituted, it’s the biggest fiscal stimulus package in U.S. history and will reportedly include direct checks to individuals and $500 billion to states and businesses impacted by the pandemic.

Taxpayers that make $75,000 or less will receive $1,200 checks from the government. Those making between $75,000 to $99,000 will receive smaller amounts and families will receive $500 for each child 17 or younger. Unemployment safety nets will reportedly grow substantially and small businesses and distressed industries may apply for grants and other assistance.

The letter signed by B-school professors warns against bailouts directed at large corporations or industries, similar to the $800 billion bailout after the 2008 recession.

“When you bail out a large corporation, the people you are actually bailing out are the investors in that corporation,” the letter reads. “Bailing investors out is grossly unfair. Investors knew when they made their investments that they would have to weather a storm or two.”

PROFS FROM PRETTY MUCH ALL LEADING B-SCHOOLS HAVE SIGNED THE LETTER

“The potential to earn high returns when the economy is in good shape compensates (investors) for this risk,” the letter continues. “Bailouts allow investors to keep all the profits in good times without bearing the losses in bad times. Instead, bailouts impose losses on taxpayers, including those most in danger of losing their paychecks.”

Professors from Harvard Business School, Stanford Graduate School of Business, The Wharton School at the University of Pennsylvania, MIT Sloan School of Management, and dozens of others signed the letter. Among the signees were Anat Admati, professor of finance and economics at Stanford; Jonathan Parker, professor of finance at MIT Sloan; and two other Stanford finance profs: Jonathan Berk and Paul Pfleiderer.

The entire letter and list of professors that signed it can be viewed here.

DON’T MISS: HBS: HOW CORONAVIRUS WILL CHANGE BUSINESS or CONSULTANTS WEIGH-IN ON COVID-19