Freakonomics Radio 411. Is $2 Trillion the Right Medicine for a Sick Economy?
Apr 2, 2020
In this engaging discussion, Gary Cohn, former head of Trump’s National Economic Council, and Christina Romer, economist and former CEA chair under Obama, dive into the implications of the $2 trillion aid package. They explore its effectiveness amidst the pandemic, the balance between immediate relief and long-term economic stability, and the complexity of funding allocations. Austin Goolsbee and Glenn Hubbard contribute insights on the CARES Act and its challenges. The conversation highlights the urgency for fiscal responsibility while addressing public health concerns and community impacts.
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CARES Act as 'Freeze Frame'
- The CARES Act, costing over $2 trillion, aims to stabilize the economy during the COVID-19 shutdown.
- It's not a stimulus package but a "freeze frame" package, keeping the economy as normal as possible.
Virus Economics 101
- Prioritize slowing the virus spread to fix the economic issues.
- Only by addressing the health problem can you make any progress.
CARES Act Goals
- The CARES Act is designed to return individuals' finances to pre-pandemic levels.
- It will cover unforeseen medical costs related to the virus.