“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,” over 230 leading economists argue in a letter to Congress regarding the $2 trillion package that’s meant to mitigate the economic impact of the coronavirus outbreak. 




Editor’s note: If you are a professor of Economics, Finance  or Law and would like to add your name to this open letter,  fill this form  (for more information on this initiative, contact professor Jonathan Berk, Stanford University: jonathan.b.berk@gmail.com )


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.


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.


Large corporations point to their employees as the justification for government relief. Workers in small businesses also need help. We should help affected workers directly.


It does not make sense to count on corporations and their bailed-out investors to act as middlemen and pass on this government relief to those who are truly affected.


When you bail out a large corporation, the people you are actually bailing out are the investors in that corporation.


Bailing investors out is grossly unfair. Investors knew when they made their investments that they would have to weather a storm or two.


The potential to earn high returns when the economy is in good shape compensates them for this risk.


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.


Corporate titans looking for government handouts argue that their industries are vital to the economy, and that without a handout they would “fail.”


Bankruptcy for large corporations does not mean liquidation. 


Bankruptcy protects the corporation from creditors and allows it to continue operating. It is possible to keep businesses operating without protecting investors from losses. Leaving no investor behind must not be the government’s objective.


Professor Anat Admati, Stanford University


Professor Stefania Albanesi, University of Pittsburgh 


Professor Fernando Anjos, NOVA School of Business and Economics


Professor Ian Appel, Boston College


Professor Yasin Arafat, St. John’s University


Professor Salman Arif, University of Minnesota


Professor Scott Ashworth, University of Chicago


Professor Andrew Atkeson, UCLA


Professor Carlos Avenancio-Leon, Indiana University


Professor Rojhat Avsar, Columbia College – Chicago


Professor Lance Bachmeier, Kansas State University


Professor Swati Bhatt, Princeton University


Professor Todd H. Baker, Columbia University 


Professor Tor-Erik Bakke, University of Illinois at Chicago


Professor Giacomo Balbinotto Neto, Universidade Federal Do Rio Grandecdo sul – Ufrgs


Professor Mehrsa Baradaran, UC Irvine School of Law


Professor Amir Barnea, HEC Montréal


Professor Richard Berner, NYU Leonard N. Stern School of Business


Professor Matteo Benetton, University of California Berkeley


Professor Jonathan Berk, Stanford University


Professor Jules van Binsbergen, University of Pennsylvania


Professor Alberto Bisin, New York University


Professor George Bittlingmayer, University of Kansas


Professor Andriy Bodnaruk, University of Illinois at Chicago


Professor Martin Boileau, University of Colorado


Nicole M Boyson, Ph.D., Northeastern University


Professor Alice Bonaime, University of Arizona


Professor David C. Brown, University of Arizona


Professor Greg Buchak, Stanford University


Professor Richard S. Carnell, Fordham University 


Professor Cassio Cavalli, FGV Direito São Paulo


Professor Stephen G. Cecchetti, Brandeis International Business School


Professor Latika Chaudhary, Naval Postgraduate School


Professor Hui Chen, Massachusetts Institute of Technology


Professor Daniel Cohen, Texas A&M


Professor Lin William Cong, Cornell University


Professor Peter Conti-Brown, The Wharton School of the University of Pennsylvania


Professor John C. Coates, Harvard Law School


Professor J. Anthony Cookson, University of Colorado at Boulder


Professor Jay Cullen, University of York


Professor Da Lin, University of Richmond School of Law


Professor Robert Daines, Stanford University


Professor Peter Dorman, Evergreen State College


Professor Shaun William Davies, University of Colorado – Boulder


Professor Harry DeAngelo, University of Southern California


Professor Bradford DeLong, U.C. Berkeley


Professor George DeMartino, University of Denver


Professor Peter DeMarzo, Stanford University


Professor Andrew L. Detzel, University of Denver


Professor Gerald P. Dwyer, Clemson University


Professor Andrey Ermolov, Fordham University


Professor Isil Erel, Ohio State University


Professor Laura Casares Field, University of Delaware


Professor Andrea Ferrero, University of Oxford


Professor Daniel K. Finn, St. John’s University and the College of St. Benedict


Professor Michael Fishman, Northwestern University


Professor Vincy Fon, George Washington University


Professor Gigi Foster, University of New South Wales


Professor Anders Fremstad, Colorado State University


Professor Nicola Fusari, The Johns Hopkins Carey Business School


Professor Emily Gallagher, University of Colorado


Professor Mike Gallmeyer, University of Virginia


Professor Rohan Ganduri, Emory University


Professor Lorenzo Garbo, University of Redlands


Professor Matteo Gatti, Rutgers Law School


Professor Anna Gelpern, Georgetown University 


Professor Fabio Ghironi, University of Washington 


Professor Eric Ghysels, University of North Carolina Chapel Hill


Professor Alicia Girón, UNAM-MEXICO


Professor Thomas Gilbert, University of Washington


Professor Itay Goldstein, University of Pennsylvania 


Professor Alexander Gorbenko, University of Southern California


Professor Pierre-Olivier Gourinchas, UC Berkeley


Professor Ilene Grabel, University of Denver


Professor Clinton A. Greene, University of Missouri-St. Louis 


Professor Steven Grenadier, Stanford University


Professor Ben Griffy, SUNY, Albany


Professor Daniel Greenwald, MIT


Professor Umit Gurun, University of Texas at Dallas


Professor Valentine Haddad, UCLA


Professor John Hall, Portland State University


Professor Kristine W. Hankins, University of Kentucky


Professor Lars Peter Hansen, University of Chicago, Nobel laureate


Professor John Heaton University of Chicago


Professor Ben Hebert Stanford University


Professor Richard J. Herring, University of Pennsylvania


Professor Christoph Herpfer, Emory University


Professor Claire Hill, University of Minnesota Law School 


Professor Robert Hockett, Cornell University 


Professor Richard Hornbeck, University of Chicago


Professor Bo Honoré, Princeton University 


Professor Jonathan Kalodimos, Oregon State University


Professor Mohsen Javdani, University of British Columbia


Professor Chris Jeffords, Indiana University of Pennsylvania


Professor Roger D Johnson, Messiah College


Professor Kathryn Judge, Columbia University 


Professor Raja Junankar,  UNSW


Professor Farida Khan, University of Colorado Colorado Springs


Professor Dean Karlan Northwestern University


Professor Mahsa Kaviani, Temple University


Professor Donald Keim, University of Pennsylvania


Professor Miles Kimball, University of Colorado, Boulder 


Professor Mary C. King, Portland State University


Professor Laurence Kotlikoff, Boston University 


Professor Yrjo Koskinen, University of Calgary


Professor Peter Koudijs Stanford University


Professor Arvind Krishnamurthy, Stanford University


Professor Philipp Krueger, University of Geneva and  Swiss Finance Institute


Professor Camelia Kuhnen, University of North Carolina at Chapel Hill


Professor Pierre Lacour, NYU-SPS


Professor Katja Langenbucher, Goethe University/House of Finance


Professor Eben Lazarus, Massachusetts Institute of Technology


Professor Ryan Lewis, University of Colorado, Boulder


Professor Victor Lyonnet, Ohio State University


Professor Andrew Lo, Massachusetts Institute of Technology


Professor Erik Loualiche, University of Minnesota 


Professor Deborah Lucas, Massachusetts Institute of Technology


Professor Hanno Lustig, Stanford University


Professor Hamed Mahmudi, University of Delaware 


Professor Julia D. Mahoney, University of Virginia School of Law


Professor Paul Makdissi, University of Ottawa


Professor Hosein Maleki, Temple University 


Professor Nadya Malenko, Boston College


Professor Jordan Martel, Indiana University Bloomington


Professor Ian Martin, London School of Economics


Professor Carlos Brunet Martins-Filho, University of Colorado at Boulder


Professor Keith Maskus, University of Colorado Boulder


Professor David Matsa, Northwestern University


Professor Egor Matveyev, Massachusetts Institute of Technology


Professor Gonzalo Maturana, Emory University


Professor W. Ben McCartney, Purdue University 


Professor Patricia A. McCoy, Boston College 


Professor Robert Merton, Massachusetts Institute of Technology, Nobel laureate


Professor Filippo Mezzanotti, Northwestern University


Professor Atif Mian, Princeton University


Professor Konstantin Milbradt, Kellogg School of Management, Northwestern University


Professor Partha Mohanram, University of Toronto


Professor Simon Mongey, University of Chicago


Professor Gary Mongiovi, St John’s University


Professor Nathalie Moyen, University of Colorado


Professor Edward Morey, University of Colorado Boulder


Professor Tracy Mott, University of Denver


Professor Stefan Nagel, University of Chicago


Professor Plamen Nikolov, SUNY, Binghamton


Professor Farzana Noor Bindu, Prairie View A&M University


Professor Saule T. Omarova, Cornell University 


Professor Lahcen Oulhaj, Mohammed V University of Rabat


Professor Arzu Ozoguz, UNC


Professor Miguel Palacios, University of Calgary


Professor Ugo Panizza, The Graduate Institute Geneva


Professor Dimitris Papanikolaou, Northwestern University


Professor Jonathan Parker, Massachusetts Institute of Technology


Professor Paul Pfleiderer, Stanford University


Professor Ludovic Phalippou, Oxford University 


Professor Monika Piazzesi, Stanford University 


Professor George Pinteris, Ohio State University


Professor Amiyatosh Purnanandam, University of Michigan


Professor Meijun Qian, Australian National University


Professor Mizanur Rahman, University of Dhaka


Professor Tarun Ramadorai, Imperial College London


Professor Robert Reich, University of California at Berkeley


Professor Morgan Ricks, Vanderbilt University 


Professor Julio Riutort, Universidad Adolfo Ibáñez


Professor Leopoldo Rodriguez, Portland State University


Professor Mark Roe, Harvard University


Professor Nikita Roketskiy, University College London


Professor Giacomo Rondina, UC San Diego


Professor Luis Rosero, Framingham State University


Professor Jesus Salas, Lehigh University


Professor Juliana Salomao, University of Minnesota


Professor Mehrdad Samadi, Southern Methodist University


Professor Razeen Sappideen, Western Sydney University


Professor Paola Sapienza, Northwestern University


Professor Daniel Saros, Valparaiso University


Professor Lukas Schmid, Duke University 


Professor Antoinette Schoar, Massachusetts Institute of Technology


Professor Geoffrey Schneider, Bucknell University


Professor Michael Schwert, University of Pennsylvania


Professor Stephanie Seguino, University of Vermont


Professor Victor de Serière, Radboud University Nijmegen


Professor Amit Seru, Stanford University


Professor William Sharpe,  Stanford University, Nobel laureate


Professor Jinfei Sheng, University of California Irvine


Professor Timothy Shields, Chapman University


Professor Tom Shohfi, Rensselaer Polytechnic Institute | Lally School of Management


Professor Justin Short, Emory University


Professor Stephan Siegel, University of Washington


Professor Stergios Skaperdas,University of California, Irvine


Professor Holger Spamann, Harvard University 


Professor Kenneth Singleton, Stanford University


Professor Anup Srivastava, University of Calgary


Professor Lea Stern, University of Washington


Professor Kenneth W. Stikkers, Southern Illinois University Carbondale


Professor Ilya Strebulaev, Stanford University


Professor Per Strömberg, Stockholm School of Economics


Professor Amir Sufi, University of Chicago


Professor Kevin Sun, St. John’s University


Professor Jennifer Taub, Western New England University School of Law


Professor David Thesmar, Massachusetts Institute of Technology


Professor Stathis Tompaidis, University of Texas at Austin


Professor George Triantis, Stanford University 


Professor Fred Tung, Boston University School of Law


Professor Selale Tuzel, University of Southern California


Professor Faruk Ulgen, University Grenoble Alpes


Professor Boris Vallee, Harvard Business School


Professor Stijn Van Nieuwerburgh, Columbia University


Professor Laura Veldkamp, Columbia University


Professor Adrien Verdelhan, Massachusetts Institute of Technology


Professor Aazam Virani, University of Arizona


Professor Angela Walch, St. Mary’s University School of Law


Professor Neng Wang, Columbia University


Professor Wenyu Wang, Indiana University


Professor Ed Van Wesep, University of Colorado, Boulder


Professor Thom Wetzer, University of Oxford


Professor Toni Whited,  University of Michigan  


Professor Charles K. Wilber, University of Notre Dame


Professor Bonnie Wilson, Saint Louis University


Professor Jon D. Wisman, American University


Professor Timothy A. Wunder, University of Texas at Arlington


Professor Ting Xu, University of Virginia


Professor Liyan Yang, University of Toronto


Professor Zhijun Yang, Metropolitan State University


Professor Tzachi Zach, Ohio State University  


Professor Miao Zhang, University of Southern California


Professor David Zalewski, Providence College


Professor Jeffrey S. Zax, University of Colorado Boulder


Professor Stavros Zenios, University of Cyprus


Professor Xingtan Zhang, University of Colorado Boulder


Professor Haoxiang Zhu, Massachusetts Institute of Technology


Professor Luigi Zingales, University of Chicago



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