>>> ARE YOU ON THE VERGE OF LOSING YOUR LIFE SAVINGS OR YOUR
JOB?
JOB? HERE’S ONE ANSWER.
>> WE HAVE A GREAT ECONOMY.
WE HAVE A VERY STRONG ECONOMY,
BUT THIS CAME -- THIS BLINDSIDED
THE WORLD, AND I THINK WE’VE
HANDLED IT VERY, VERY WELL.
>> THAT WAS THE PRESIDENT AFTER
THE STOCK MARKET COLLAPSED AGAIN
TODAY AT THE WHITE HOUSE PRESS
BRIEFING ON CORONAVIRUS WHERE
THE PRESIDENT MADE VERY BRIEF
REMARKS BEFORE, IN EFFECT,
FLEEING THE BRIEFING ROOM WHILE
VICE PRESIDENT PENCE AND OTHERS
TOOK A FEW QUESTIONS.
EARLIER IN THE DAY, THE
PRESIDENT BLAMED THE SINKING
STOCK MARKET ON, QUOTE, FAKE
NEWS.
NEWS. BUT THE NEWS ABOUT CORONAVIRUS
IS VERY REAL AND IT IS NOT GOING
TO GET BETTER QUICKLY, WHICH IS
WHY THE TRUMP ADMINISTRATION IS
NOW PROPOSING EMERGENCY
LEGISLATION TO TRY TO HEAD OFF A
RECESSION.
RECESSION. BEFORE LEAVING THE BRIEFING
TONIGHT, DONALD TRUMP IDENTIFIED
ONE PROPOSAL TO COUNTER THE
ECONOMIC EFFECTS OF THE
CORONAVIRUS CRISIS.
CORONAVIRUS CRISIS. >> WE’RE GOING TO BE MEETING
WITH HOUSE REPUBLICANS, MITCH
McCONNELL, EVERYBODY, AND
DISCUSSING A POSSIBLE PAYROLL
TAX CUT OR RELIEF, SUBSTANTIAL
RELIEF, VERY SUBSTANTIAL RELIEF.
THAT’S A BIG NUMBER.
>> JOINING OUR DISCUSSION NOW IS
AUSTIN GOOLSBEE, FORMER CHAIRMAN
OF THE COUNCIL OF ECONOMIC
ADVISERS FOR PRESIDENT OBAMA.
HE’S NOW A PROFESSOR OF
ECONOMICS AT THE UNIVERSITY OF
CHICAGO.
CHICAGO. PROFESSOR GOOLSBEE, YOUR
REACTION TO WHAT THE MARKET IS
DOING, WHAT THE ECONOMY LOOKS
LIKE SIX MONTHS FROM NOW IF WE
CAN TELL, AND THE PRESIDENT’S
LATEST IDEA OF A PAYROLL TAX
CUT?
CUT? >> WELL, LOOK, THE MARKET WAS
BORDERLINE IN TERROR.
IT STARTED.
IT STARTED. WE HAD ONE OF THE WORST WEEKS IN
MANY YEARS, AND THEN THE FLIGHT
TO SAFETY AS THE FINANCE PEOPLE
CALL IT OF PEOPLE BUYING UP
TREASURY BONDS BECAUSE THEY
THINK THEY’RE THE SAFEST ASSET
IN THE WORLD, LITERALLY BROUGHT
THE INTEREST RATE TO THE LOWEST
IT’S EVER BEEN, LOWER THAN IN
THE FINANCIAL CRISIS, LOWER THAN
EVER.
EVER. AND YOU SAW TODAY THE MARKET
DROPS.
DROPS. PEOPLE ARE NERVOUS.
THEY LOOK AT CHINA.
THEY LOOK AT ITALY.
THEY SEE THAT THERE IS SEVERE
SLOWDOWNS IN PLACES WHERE THEY
HAVE TO IMPOSE THESE
QUARANTINES.
QUARANTINES. AND WE’RE ON THE BRINK OF WHAT
MAY BE THE BIGGEST PANDEMIC IN
OVER A CENTURY, AND IT’S CLEAR
THE WHITE HOUSE HAS NO IDEA
WHAT’S GOING ON.
THEY’RE NOT TESTING.
WE HAD THE PRESIDENT OF THE
UNITED STATES HIMSELF GET UP A
FEW DAYS AGO AND SAY, WE HAVE
ONLY 14 CASES, AND PRETTY SOON
THAT WILL BE DOWN TO ZERO.
AND PUBLIC HEALTH OFFICIALS IN
THE UNITED STATES AND AROUND THE
WORLD JUST KIND OF LOOKED AT
EACH OTHER AND SAID, OH, MY GOD.
IS THERE NOT A PLAN TO TRY TO
SLOW THE SPREAD OF THIS VIRUS
BECAUSE THAT IS THE CRITICAL
THING FOR HELPING THE ECONOMY.
THE REASON THAT PEOPLE GETTING A
PAYROLL TAX CUT IS PROBABLY NOT
THE RIGHT ANSWER IS BECAUSE, A,
A BUNCH OF PEOPLE ARE GOING TO
LOSE THEIR JOBS, SO THEY DON’T
PAY PAYROLL TAX.
A BUNCH OF PEOPLE ARE RETIRED,
SO THEY DON’T PAY ANY PAYROLL
TAX.
TAX. BUT EVEN IF YOU GIVE THE PEOPLE
A PAYROLL TAX CUT, THEY’RE NOT
GOING OUT OF THEIR HOUSE BECAUSE
THEY’RE AFRAID TO GO TO PUBLIC
PLACES.
PLACES. AND A LARGE SHARE OF THE U.S.
ECONOMY ARE SERVICES AND THE
FACE-TO-FACE KIND OF ACTIVITIES
THAT ARE EXACTLY WHAT GET
HAMMERED IN THIS KIND OF A FEAR
CRISIS.
CRISIS. AND SO I DON’T REALLY SEE THAT
THE PAYROLL TAX IS THE OBVIOUS
FIRST STEP ON THAT.
>> IS THERE A FIRST STEP TO TAKE
HERE TO DEAL WITH WHAT THE
ECONOMIC CONDITIONS YOU FORESEE
AND ANY -- AND WHAT THE STOCK
MARKET’S DOING?
MARKET’S DOING? >> YEAH.
>> YEAH. LOOK, I THINK THERE ARE SEVERAL
FIRST STEPS, AND THE BACKDROP TO
THE FIRST STEPS ARE WE HAVE TO
HOPE THAT THIS CORONAVIRUS
FOLLOWS THE PATTERN OF A FLU
VIRUS, NOT AN EBOLA VIRUS, WHICH
IS TO SAY THAT IF WE GET TO
WARMER WEATHER AND IN THE
SUMMER, THAT WE MIGHT HAVE SOME
KIND OF A RESPITE, THAT THE
INFECTION RATES MIGHT GO DOWN.
SO THE FIRST THING IS YOU DON’T
WANT TO HAVE PEOPLE HAVING TO GO
BANKRUPT, AND YOU DON’T WANT TO
HAVE TO HAVE THEM GO TO WORK
WHEN THEY’RE SICK.
SO I THINK PAID LEAVE IS AN
ABSOLUTE FIRST STEP THAT WE
OUGHT TO BE GETTING EVERYBODY
PAID LEAVE.
PAID LEAVE. AND THE THING ABOUT VIRUS
ECONOMICS, AS I SAY, THAT MAKES
IT DIFFERENT THAN REGULAR IS
THAT WITH VIRUS ECONOMICS, THE
BEST THING YOU COULD DO FOR THE