Poverty rates continue to rise as virus relief talks fall through


What is at stake here for this economy as there is clearly no relief coming right unemployment numbers yesterday still hundred and fifty nine, hundred, thousand people industrial production is down people are spending the savings they accumulated when they were getting the six hundred dollars of extra unemployment money How okay. Here's a starting question. How bad is it? Well I. Feel like I'm I'm I feel like I'm always so gloomy when I come on your show that. The situation does seem like it's getting worse I mean the number of Americans in poverty has grown by. Sixteen million in the last few months. Based on some estimates. And it had fallen at the pandemic start because of government aid of that aid had helped, push up household spending the summer probably economy. But now it's really long gone I. Feel like we're definitely at risk of the kind of persistent economic as we saw after the financial crisis so that really matters but administration officials now say it's GonNa be hard if not possible to get something done before the election. As you know, the President says he's grappling with Anti Pelosi, over an aid package by you know, the president still has pretty big. Divisions as well with Mitch McConnell I'm the president is floating figures on north of eight trillion for potential aid package by Senate Republicans. Say the reluctant to go above five hundred, billion of quite a lot of distance there between them well, Catherine Pell that gets me to you and to a newsletter that you and I both subscribed to which the politico playbook right? It's you know political details, gossip items and lots and lots of news there there afternoon update today had this as this subject line. We regret to inform you that Larry cudlow is saying things again, Larry Cudlow of course is the president's chief economic adviser one of them anyway, and he is Once again, saying things about this economy that are simply not true. and I wonder how troubling that is to you. Yeah I saw that I wasn't sure whether to laugh or to cry when I saw that headline kudlow basically said, we shouldn't be worried about the many many people who are unemployed because they're all starting new businesses and this is just creative destruction at work and look at to the extent that new businesses are being founded. That's good news we want more business creation. The real problem is that we've lost many multiples of that presumably thousands and thousands of small businesses not because their business models weren't viable not because you know they were unproductive they were shut down because of this massive force of. This sudden shock of the pandemic and for many of them, it became unsafe to continue operating. So it's not as if created described destruction usually think of as something where the unproductive businesses go out of. Operation because they don't, it's not they don't deserve to survive what they just can't compete. You know that that the strongest survive and get replaced the the ones that are not replaced by stronger ones. That's not really what's going on here. It's not that these companies were unproductive they were viable they're out of business because. The pandemic still sucks and the government response to it sexist well and. You know they're they're essentially the victims of mass government failure at this point, I would argue so celebrating this as. A flourishing of American capitalism, which is what Kudlow hit essentially said I, think is a little bit wrongheaded. Yes. Celebrate the entrepreneurs but remember that entrepreneurs are also going out of business through fault of their own Joseph Schumpeter Peters, probably rolling over in his grave. I would also point out honest once in that Mister Kudlow said today Oh yeah. We could totally get Republicans on boarding pass this bill, which is simply not granted in fact as Mitch McConnell told his yesterday but I wanna to pull back from the American economic situation for a minute and and point out two things internationally, which were times normal. We would be all over on this program number one? Boris Johnson the Prime Minister of the United Kingdom of Great Britain and Northern Ireland said today yeah. We're GONNA have to do brexit without a deal with the European Union and that people just have to get used to that number one and number two reporting you've done the European Union is going to be allowed by the World Trade Organization tariff the United States over its Boeing subsidies and I just global trade goes on and we we seem not to be paying attention. Yeah absolutely. I. Mean I think there's the prospect right now some really significant trade disruptions on between the in the UK and between. The you in the United States while both. And the United States have these weak economies in their seeing no end in sight to their krona virus cases. So I mean with Brexit you know this is just the latest deadline that they blown through and tax will continue but the prospect of this no deal Brexit is definitely getting more real and that could mean you know massive gridlock at the ports. All kinds of problems this December when there is this real cutoff. And with the Deputy o'casey mentioned. The now has the right to impose a four billion dollars of tariffs on the US in a trade case. There was a similar case last year where the US had got permission to impose seven point five, billion dollars in Paris on Europe. So the question is, can everybody come to a deal here? That would roll back both of those tariffs are we are we gonNA see more tensions in higher prices on both sides of the Atlantic now

Coming up next