Abigail discussed on Balance of Power


A check on the markets because the equity markets are up apparently because of some hope on a possible treatment for the corona virus disease cell return now to Abigail do little for report well we certainly do have a strong risk appetite demonstrated by the rally that we're seeing for stocks the S. and P. five hundred in the major other major averages all up more than two percent the tech heavy nasdaq up even more and take a look at the Russell two thousand small caps once again leading the way up four point seven percent that's especially risk on David because they're smaller cap companies are considered to be growth here they've been lacking this year so now they're catching up in many see this as a key sign that this rally could continue you were mentioning hope around a drug treatment for covert nineteen out of courses Gilly add sciences treatment and the treatment plan around the regime around that drug is proving to be a perhaps more hopeful helping that stock higher and also helping in the idea that maybe this rally will continue because if there is an effective treatment for those who are severely ill with covert nineteen the economy can open perhaps more quickly than expected of course alphabet they put up a better than feared quarter as well David helping this risk on rally yeah check once again helping to lead the way thank you so much to have a little well we're all anxious to get the economy going again but we want to do it safely and we welcome now a man who is involved in making the plans for restoring the US economy he is represented don Beyer of Virginia a Democrat and he is among other things vice chair of the joint economic committee in the house of representatives of Congress and thank you so much for joining us give us your take right now the plans are being discussed federal combined with state are we where we need to be on the plan to get the economy going again no but we're moving in the right direction here it was almost most of the states have done a really good job of controlling the coronavirus flattening the curve we are worried about the handful of states like Georgia they're talking about opening up probably prematurely hello I talked to doctor Chris Murray who runs the big Washington university model and those coronavirus curse could change a lot of people start to get out too much then we still have to deal with the enormous fiscal gaps for state local governments which Republican governor Larry Hogan of Maryland suggests could be as high as five hundred billion dollars and we will be going to address that so let's talk about that specifically since you raised it there is really something of a political battle scenes brewing over the possible systems the state with people like senator Mitch McConnell Majority Leader saying we should be bailing out states that have been profligate in their pensions how is that going to get resolved we have president trump is they think they will condition and on whether they have sanctuary cities are not well that that that I think it is pretty much unconstitutional plus they're very few so called constitution or sanctuary cities anywhere in the United States what the what McConnell's let the go bankrupt let them eat cake thing missed was that the people that would be thrown out of work would be police officers and firefighters and that the people to pick up the trash and in the doctors and nurses the people that keep our whole cultures and communities rolling by the way almost every state that McConnell and and the present were threatening our states that give much support of the federal budget than they get back places like New York and California there is huge net contributors so I I I hello backed off yesterday or the day before I think we get more money for state local what is it too cynical political or is there possibly a point here that maybe grants to the states to try to help them through this fiscal problems should be specific condition and what it goes for this essay not taking care of pension plans easier and effective the original guidance we put a hundred fifty billion into the very first bill and they were they were pretty strict things that had to be coronavirus related and it's understandable you don't want a state or local you know building a new bridge or starting some new project but the governors of ask for flexibility one of the things that's been left out of the regional bills is any attempt to take care of people that don't have social security numbers including legal and illegal immigrants are people with and without legal documents so they rely on the governors and the mayors to take care of them and that the spending needs to be flexible for that and then princes are are probably the least thing that before the governors are worried about they can always push that a little bit what they can't push for the essential services that make governments from some fire one of the things is in the case of how bad things are is the unemployment in the today we got numbers on GDP that confirm what we thought we're in a recession but the unemployment numbers have really been staggering twenty six million people select and five which we think it's gonna get significa worse than that one of the concerns of the joint economic committee which you vice chair is the unemployment insurance we may not even be getting accurate readings from frankly because it's so difficult in some states to five that gives a sense of what that problem is what can and should be done about it J. David you really put your finger on it right away that something like for every ten people who filed for unemployment there's another three or four who tried but couldn't get it and two more that didn't even try to convince talk well you know there's twenty six million people unemployed why so you can try to get it we we have found that most of the state systems just crashed because they've never seen the kind of bowling but they didn't of those twenty six million I don't know what today's numbers and we can go that route nine point two million Americans have lost their health insurance health insurance must talk to their job so we're really pushing hard for making unemployment insurance are part of an automatic stabilizer it should be about politics it should be about cracking the unemployment number in the country so the unemployment insurance amount the federal contribution would fall as the unemployment rate falls and rises and prices because we don't know how long this is going to last can you give us any sense of the political appetite on Capitol Hill to do something like that making automatic stabilizers you call it well I think it'll be a lot on the democratic side and we're working on the Republican side hill Republicans eight ten not to like government programs so why not build a program that rises and falls with the economy rather that rises and falls with partisan battles here are the result of repentance and it's hard to stop a government program so why not make it so that the government program stops was no longer needed let's build it into some external metrics rather than you know who's got the stick today so it's a little bit closer to your home if we could the state of Virginia what is the situation in Virginia right now the spectacle of ours we in the northern Virginia area which is suburban Washington we're almost one of the hot spots but statewide is going very well and the governors leaders of governor north inspectorate and the Virginia people been all very well well adapted to the self quarantining the university of Washington model that we talked about the I HME has moved back a day Virginia correct response we re opened by a couple of days every couple of days so we could we've improved by about two weeks so I I think we could do okay our our big concern right now is for protective equipment as is in so many places the masks and the roads I also don't want to go before a talk about the PPP the prop program for small businesses because you found in your own business of car dealerships there in the northern Virginia area give us a sense of the situation in northern Virginia in Virginia more generally is the money getting the people who really needed the small and medium businesses what is it Dave it's a great question in the first round no we did it tended to go to the middle size businesses you know two hundred three hundred four hundred people who had good banking relationships good lawyers good accountants and the little guys with twenty or fewer employees Tenterfield ploys yes that the the so called underbanked they were really left out of they didn't get to the bank in time or they were prioritized because the banks recently so we want to take care of our best customers first in the second round that we disapprove last Thursday another three hundred eighty four billion wouldn't we specifically earmarked the first sixty billion for these smaller under bank attended the veteran owner role or minority owned or women out I just got off the phone ten minutes ago with one of our community banks in Alexandria yeah they stayed up all night Monday night this processing of loans and they there again at the point of the we think the money will run out by the end of the week and the the at that point we'll have been six hundred billion in and and a seemingly inexhaustible appetite at the small businesses are shut down we need to do more very quickly thank you so very much for your time in this country and don Beyer he's a Democrat from Virginia coming up here what is the situation with emerging Asia when.

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