Yellow trucking company's filing for bankruptcy protection is indicative of businesses that were in trouble during the pandemic era and were kept afloat with special loans, but now are not able to make it on their own, former Secretary of Labor Alex Acosta told Newsmax on Monday.
Yellow, which has been around for almost 100 years, was provided a loan during a pandemic-era relief program under the Trump Administration, of which Acosta was part.
The former Labor secretary told "National Report" that it is "very possible" taxpayers might be out of the money the government loaned, explaining that "Yellow has had difficulties for almost a decade, taking on more and more debt. During the pandemic they were kept afloat by this loan, with thousands of jobs at stake."
Acosta emphasized that "the reality is that during the pandemic a number of companies that were in trouble were kept afloat and now we are seeing the cost of that," where some companies simply can't survive without those loans.
He said that other businesses also faced similar difficulties, but that Yellow apparently did not adapt as quickly as some other companies.
On another topic, Acosta also commented on Zoom telling employees to return to the office for at least a few days a week.
In a statement, the company said a structured hybrid approach is most effective, where employees who live near the office need to be there at least two days a week.
Acosta said the "irony of Zoom issuing that statement cannot be lost," adding that if someone is going to be part of a company, it seems reasonable that management requires coming to the office a few days a week.
Regarding inflation, Acosta said a report that the average cost for back-to school supplies for a family with children in elementary school is $890 illustrates the practical problems that inflation causes for many people in the United States.
He said that this is especially so for those on a fixed income, stressing that "inflation is out of control and needs to stop."
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Brian Freeman ✉
Brian Freeman, a Newsmax writer based in Israel, has more than three decades writing and editing about culture and politics for newspapers, online and television.
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