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Axios Re:Cap

Bailing out America

Axios Re:Cap

Axios

Daily News, News

4.5705 Ratings

🗓️ 11 March 2020

⏱️ 11 minutes

🧾️ Download transcript

Summary

As coronavirus spreads across the economy, numerous federal aid options are on the table for industries ranging from hospitality to oil and gas. Dan discusses bailouts and breaks that might be ahead with Washington Post White House economics reporter Jeff Stein. PLUS: The tech fight over fighting child exploitation and what happens when big schools shut down.

Transcript

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0:00.0

Welcome back to Xerrorado, where we take just 10 minutes to get you smarter on the collision of tech, business, and politics.

0:12.2

Sponsored by Bridge Bank. Be bold. Venture wisely. I'm Dan for Mack. On today's show, the tech fight over fighting child exploitation and what happens when big schools shut down.

0:22.9

But first, bailing out America. So coronavirus is spreading like, well, like a virus through

0:28.8

America's economy. And we're beginning to hear much louder talk about possible government

0:33.4

bailouts of particularly hard hit sectors like cruise lines and airlines. There's even been some speculation that the White House is looking to bailout shale companies,

0:40.9

better known as fracking companies, as the price of oil plummets.

0:44.1

But so far, we've gotten no specific bailout proposals from the White House, or even word

0:49.5

on if federal bailouts are coming, while Congress, it's scheduled to go on vacation next week.

0:54.6

The big question right now is if there is political will for bailouts, following voter blowback

0:59.5

in 2008, and if so, how they'd even be done. The buzzword this month from health officials

1:05.4

has been containment, you know, in terms of quarantining individuals who might have been exposed

1:09.3

to coronavirus, but there's no real parallel of containment for American business, where an untold number of

1:15.6

industries are being hit simultaneously with butterfly effects going out in every direction.

1:20.7

Even pro sports, an industry that usually prints money and it would be impossible to bail out

1:25.4

without voter rebellion, it's not immune. As some teams

1:28.6

might soon lose the customer ticket revenue, they need to pay players. And that doesn't even

1:33.3

account for all the stadium and arena workers whose hourly wages would disappear. Like in 2008,

1:38.8

bailouts today would be no sure economic fix. Those who put together the plans back then

1:43.9

weren't even sure it would work,

1:45.2

even though history's been fairly kind to them. It's unclear of today's policymakers in the White

1:49.9

House or in Congress have the same sort of inclination or stomach for the fight. In 20 seconds,

1:55.3

we'll go deeper with Jeff Stein, White House economics reporter for the Washington Post. But first,

...

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