There will be no recovery until we contain this pandemic. Mismanagement of public health & of reopening will affect generations to come. But extending a “freedom dividend” and reimagining federal government spending can help the recovery.
Recorded on June 27, 2020
On this episode of New Business Paradigms, Academy Chief of Staff, Kristy Jansen, and Academy President, Rinaldo Brutoco discuss how an effective federal government ideally would offer economic support to help states get back on their feet. Rinaldo touches off his discussion of how we might dig ourselves out of this economic collapse by comparing his perspective to one recently expressed by Paul Krugman. Rinaldo notes that he agrees with Krugman about the absolute necessity of getting the pandemic under control before we can heal this economy but disagrees with Krugman over direct stimulus to individuals. While Krugman argues it’s too expensive to keep funding additional unemployment insurance payments or to do ongoing direct payments to all adults, Rinaldo argues that we can’t afford NOT to keep American households solvent. More direct payments, a transition to single-payer health insurance, and more investment in regular people are key for minimizing this downturn. We reject these approaches at our peril.
In addition, we address economic indicators, focusing on when gold might reach its true price – answer some listener’s questions – and spend a bit of time on Global Signposts. The show concludes with a discussion about the state of the Affordable Care Act and Rinaldo lambasts Governor Newsom for a failed reopening in California.
(Credits: Produced and edited by Benjamin Schwartz and Kristy Jansen. Theme Music by Alejandro Del Pozo)