This was a terrible day for markets. Heres what comes next.
In Los Angeles. I'm Kai Resolve Thursday today. The twelfth of March always have your long everybody. You know there have been a couple of moments in this economy the past twenty years or so where things have just felt different uncertain yes. Sh- orbits a really elevated kind away right after September eleventh. Definitely parts of two thousand eight absolutely also now today and it's pretty clear that Republicans in Congress and the president don't really get it yet so in line with our continuing belief that context is everything. We've gotten any Larry on the phone. She's a staff writer at the Atlantic does a bunch of coverage of the economy. Good to have you on. Thanks so much for having me as we speak. Congress is Trying to figure out what it's GONNA put into. Whatever this corona virus stimulus bill is going to look like and they are obviously unable to agree. Why is it so hard to figure out where to put money in the situation like this? It's difficult because of politics so it's important to note that we know a tremendous amount about how to fight a recession. And we're not doing any of them. Despite the fact that we know that the economy is slowing down. Right as we right as we speak. We are almost certainly tipping tour session but we could avoid it or we could make much smaller and we have the know. How so the reason that that Congress is really struggling. I'm is all politics. It's got nothing to do with this being hard to fight or us not knowing how to fight it. Is there then a a wish okay? This is a ridiculous question even as I ask it. Is there a way to make them see the light? Because you actually tweeted out the other day the multipliers on some economic activity right increasing food stamps. gets you a dollar. Seventy one's worth of economic activity for every dollar. You spend. I mean we know this information. Yes absolutely so. I know that we were both reporting back when that tarp vote failed in two thousand eight. Basically this is during the end of the Bush administration and they put together a package to calm the financial markets. And make sure that we wouldn't have bank runs that kind of thing and the vote failed in Congress and the market collapsed again it was already falling and people really panicked and I think that was the moment that Congress decided. Okay we might be really divided on this but we can't waste any more time arguing with each other. It's unfortunate but I think that we might not have hit that moment yet in the United States where it dawns on people. This is bad and we can make it be a lot less bad if we kind of come together and find some kind of center path and they need to be able to go back to the well if things get worse what is it center. Her path look like my guess. Is that you're going to have some combination of not terribly. Efficient tax cuts along with direct spending measures. Probably run through the unemployment insurance and food stamp programs. But I certainly wouldn't put any any money on that that's going to be combined with also a public health stimulus package. Probably that's going to get a lot more money out to the states and the local communities that are really fighting the scariest part of this which speaks to the actual nature of this crisis. Perhaps why the Federal Reserve's move today and whatever congress might do in the short term probably will prove effective and that is to say it's a public health crisis about which people are truly scared. It's not a structural thing like the banks in two thousand eight absolutely so the head water of this. Is this utterly terrifying virus that you know. We're really uncertain how bad it's going to be. It seems that we are very behind in terms of testing and care but then downstream from that we have a major economic crisis unfolding. We are already starting to see mass layoffs from companies that are in travel business for instance mostly overseas. But they're starting to show up here lots of small businesses. This is going to turn into a jobs crisis. And that's where these economic measures can help because we want to treat that downstream crisis at the same time that we're dealing with this terrible public health consequences of the novel Corona Virus. Any Larry. She's a staff writer at the Atlantic. Any thanks a lot appreciate your time. Thanks for having me.