Olivia Michael | CNBC
If the government approves further stimulus funds, they should go to individual consumers and small businesses, venture capitalist Chamath Palihapitiya said Wednesday.
In a searing diatribe against the troubled sector, the CEO of Social Capital expanded on comments he made earlier in the year to CNBC in which he said airlines should not be bailed out because they are so poorly managed.
Palihapitiya said that before the coronavirus pandemic, the companies already were doing “the most absolutely horrid and idiotic form of capital allocation you could imagine.”
“Not a single extra dollar should go to these companies,” he added.
Among the poor decisions he cited were not investing in research and development, saving or putting more resources into their workforces. Instead, they focused cash on share repurchases and inflating stock prices.
“This has been happening for the last 15 or 20 years,” Palihapitiya said