The Daily Can Government Spending Save the Economy?
May 18, 2020
Ben Casselman, an economics reporter for The New York Times, joins Jerome H. Powell, Chairman of the Federal Reserve, to tackle the pressing economic crisis. They discuss the alarming rise in unemployment and the urgent need for government intervention to prevent long-term damage. Powell emphasizes the necessity for Congress to provide fiscal support, even at the cost of increasing national debt. The conversation reveals the contentious divide between Democrats and Republicans over relief measures, highlighting the challenges of political action during this unprecedented time.
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Dire Economic Numbers
- The U.S. economy is facing a severe downturn, with millions of Americans filing for unemployment.
- Retail sales and industrial production have plummeted to historic lows, worse than the Great Depression in some sectors.
Powell's Stark Warning
- Federal Reserve Chairman Jerome Powell warns of deep, broad economic damage from the pandemic.
- He emphasizes the disproportionate impact on vulnerable workers.
Permanent Economic Damage
- Permanent economic damage refers to long-term job losses and business closures.
- If people are out of work too long, they can become detached from the labor market, making recovery harder.
