Pelosi: House 'close' to striking deal with Trump on coronavirus response package

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Breaking news from Capitol Hill as House Speaker. Nancy Pelosi announced that she is close to an agreement to legislative deal with the trump administration on a package that could be passed tomorrow to deal with mostly the economic effects of the Corona virus and Donald Trump has not been involved in the negotiations is treasury. Secretary has done the president's job for him because the president is not in the mood to speak with Nancy Pelosi and reportedly believes that Speaker Pelosi would humiliate him if he involved himself in the discussions. This is of course one way of looking at the other way of looking at it as Donald trump humiliates himself whenever he opens his mouth as he did last night. While Donald Trump was addressing the nation last night for ten minutes from the office stock market futures trading started to drop dramatically and then when the market opened today proceeded to crash by the largest amount since nineteen eighty-seven losing almost ten percent of its value today. Harvard economics professor and former Treasury Secretary Lawrence Summers tweeted hostess sets. What I believe is a new world record for presidential market value destruction. Joining us now. Is Jason Furman? The former chairman of the Council of Economic Advisers. The President Obama. He is now professor of the practice of economic policy. At Harvard's Kennedy School. Thank you very much for joining US tonight. Professor Ruin what. What would you suggest the government action that could be taken now? What action could be taken to deal with what we're seeing as the economic effects of this crisis? Lawrence this is the most serious economic crisis. This country may have faced since the Great Depression bigger than what we faced in two thousand eight. Two thousand eight was terrible. It was devastating but most people kept their jobs. Many people kept spending right now. Everyone is cutting their spending large swaths of the economy. People's jobs are at risk. And so once you start to think about that the answer to your question of what we should do the more. We can do the better so my next question was going to be. Is this one thousand. Nine hundred eighty seven or is this nineteen twenty nine which you've already answered that it's closer to that of maybe about six months ago. I reread John. Kenneth Galbraith book the Great Crash About The nineteen twenty nine stock market crash. And when you read the things people were saying As it was already underway as the crash was happening others so many people who sounded like Donald Trump that saying it will bounce back as the president said today the stock market will bounce back. Don't worry about it Larry cudlow the other day saying invest As it's going down you know you'll be very happy with that. Of course it's dropped dramatically since Kudlow said that so just to set this of for our audience perspective you are comparing this now to the nineteen twenty nine crash of the stock absolutely and you know the difference is it depends on what happens if we get through this virus and the next two months then maybe it bounces right back if it takes us nine months even at that point if we find a cure for the vaccine a lot of damage a huge amount of damage will be done to companies to workers on to unemployment of type. That would persist. And you could take a long time to to recover from so I I'd love to have more reassuring things to say for Lawrence but I just I am. I am worried right now. Well you're confirming what. I've been feeling in my my amateur way about this but so this presents an enormous policy-making challenge because when you talk about things like payroll tax cut which the president mentioned a few days ago and it died instantly when the Senate Finance Committee chairman said he wouldn't even consider it. That could come back. But a payroll tax cut to a person. Who's no longer on payroll Doesn't work the way it bye-bye in the stimulus way. You might have wanted it to a while. That person was still on the payroll. That's absolutely right so what I think we should do. Is Number one everything. We can do on health free testing which is in the house legislation. I think that's terrific. We're GONNA eat a lot of hospital beds. A lot of ventilators. We're going to need that fast

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