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Freakonomics Radio

411. Is $2 Trillion the Right Medicine for a Sick Economy?

Freakonomics Radio

Freakonomics Radio + Stitcher

Documentary, Society & Culture

4.632K Ratings

🗓️ 2 April 2020

⏱️ 53 minutes

🧾️ Download transcript

Summary

Congress just passed the biggest aid package in modern history. We ask six former White House economic advisors and one U.S. Senator: Will it actually work? What are its best and worst features? Where does $2 trillion come from, and what are the long-term effects of all that government spending?

Transcript

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0:00.0

Well, I think the goal from the beginning was the right one.

0:04.8

How do we shore up the economy during a period of shutdown?

0:09.7

As you likely know, last week, Congress passed and the President signed the CARES Act

0:14.2

that's coronavirus aid, relief, and economic security at a cost of $2 plus trillion.

0:21.6

This is not familiar territory for many politicians who normally think about, quote, stimulus

0:28.0

packages. Rather, it's an economic, I don't know how you would say, a freeze frame package.

0:33.8

What does it take to keep the economy simulating as normal while we work out the health problem?

0:40.5

The health problem, as you also know, is that the US has become a global hot zone for

0:45.6

COVID-19.

0:46.6

Look, the first rule of virus economics is that only by slowing the spread of the virus

0:53.8

can you do anything to fix the economics.

0:57.7

How well can the economics be fixed?

1:00.1

Today on Freakonomics Radio, we try to answer all your questions about the CARES Act with

1:04.5

the help of seven guests.

1:06.8

They include one US Senator, a Democrat from New Jersey, a former senior adviser to President

1:12.4

Trump, and five economists, each of whom has worked in the White House, two under Republicans

1:17.9

and three under Democrats.

1:19.8

All the economists had crisis experience during their White House tenures.

1:23.9

For some, it was the global financial meltdown.

1:26.8

The consequences of doing the wrong thing just feel absolutely enormous.

1:32.5

For others, it was the 9-11 terrorist attacks.

1:35.7

Obviously, it's a human tragedy.

...

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