United States, Claudia Som, Bloomberg discussed on Balance of Power
Stocks dropped her two week low and Treasuries are up as a resurgence in new virus infections began halting progress on reopening the US economy. The SNP extended his weekly lost more than 2% of the governor of Texas rolled back some re opening measures, including ordering the closing of taverns. In Florida reported a record number of new cases and outlawed the sales of alcohol in bars. We check the markets every 15 minutes. Throughout their training, day s and P 500 is down 1.9% down 57. The Dow's down 2.3% down 600 too. And the NASDAQ is down 1.8% down 178 10 years, up 16 30 seconds. He'll 300.63%. West Texas Intermediate, down 2.1% of 37 90 of barrel collects. Gold's up 1/2 a percent of 17 79 30 announced the dollar yen. 107 17. The euro dollar 12 £15 dollar 23 26 That Is your Bloomberg business Flash. I'm glad Jared now more Bloomberg balance of power with David Westin, right here on Bloomberg Radio. This's balance of power in Bloomberg television radio. I'm David Western, Well, the government's already pumped trillions of dollars in the U. S economy, But it's not clear that is working, at least not yet, at least to the degree we needed to. We welcome now Claudia Som. She's the director of economic macroeconomic policy at the Washington Centre for Economic Growth. Earlier, she served as an economist at the Federal Reserve and also on the Council Economic advisor of the White House under President Obama. So welcome, Claudia. It's great to have you back with us. First of all, give us a sense of what we need right now. In this economy, Do we need more fiscal stimulus out of Congress? Yes, Thank you, David for having me on again today. I really appreciate it. And the answer to your question is absolutely Congress and the administration have got to get more really found and immediately we are not over the woods. Land of many of the relief part of the relief package are going to expire very soon. And that that is gonna be a big problem. Because families and small businesses in state local governments are not ready to go it alone without more support. So Claudia pick up on that, specifically, as you said, families and small businesses. There's one issue about how much there is also an issue about where it goes to Andi. I wonder whether we are exacerbating a great and growing problem this country already and that his income wealth inequality which has been really building or the last generation are there ways we could use this stimulus to try to combat some of that? Maybe turn around a bit. So my answer to that is and both. Okay. We went into this recession into this crisis with an immense amount of income and wealth inequality. The way that we don't with the great recession and very slow recovery exacerbated those big problems. We have to learn the lesson this time so that that does not happen again. And yet we are in a crisis. Right now. This is a massive and this is a disaster for just millions and millions of families and small businesses, and so we have to hit the economy stabilized first. And that means everybody and then we go to rebuild. We have to figure out okay, who really got hurt? And help them. But right now, we need to be doing both things because we know the unemployed. The businesses that are really close to going out of business. They really, really need help. But like Everybody needs help, too. And there was the double whammy If I could put it that way of the pandemic, which disproportionately affected particularly black on Hispanic communities, as well as long as native Americans, by the way, so they got hit really hard with that in terms of the disease, and then they got hit with the unemployment because last hired first fired their unemployment rate, particularly blacks went up. So the question is, Can we do something more than just get money to them? Can we change the system in such a way that could actually perpetuate sort of return toward equality. Yes. And I just I want to amplify and actually points. We have three crises that we have seen in the last few months. So I agree. The public health The economic crisis and we saw in the last month very severe racial justice. Issue in the United States, and that added another level and frankly when you have dressed people to the brink in terms of their economic conditions, What they can do to support their families. You're put in the United States in a very difficult a very bad place, and we saw One of many consequences of this. No, but all is not lost. There are absolutely things he can do their thing that air based on research and evidence and past experience, right so we can do this. And There's several things one right now We absolutely have to shore up the safety men in the United States and we have just not playing politics with the unemployment insurance system is being pushed to a breaking point. You got to do that better. The payroll protection programs, the loans that went to small businesses that was amazingly well intended program. The administration of that program has been very problematic. And we know that now we know that what these businesses need is not loan. They're gonna have to pay back. They need money, and it's really important that we keep them businesses. And state. Local governments haven't gotten really any help so far, and they're they're getting crushed in terms of their budget, and we will pay for that. We paid for that in the great recession for a very long time. Now what you talked about how my north has groups are being even more hard headed. These numbers that we have there absolutely tragic. I mean the job losses among blacks are higher than white. They always are in this recession, the job losses among Hispanics Latino workers there. They really even hard to look at, and we don't in a lot of cases has good data on Native American. There's been a lot of Focus and news coverage of what's happening. In among native American communities, and again like they're getting hit with the public health crisis economic crisis and they were in absolutely Unexcusable place in terms of their financial security before this all got going So We know how to make this better and even get to a better place in February, But if we don't comment on the administration doesn't really do something that's like good something it will get worse. It's getting worse right now. Quoting It's always a treat to have you with us. Thank you so much for those contributions, and she is from the Washington Center for Equitable Growth coming up here trying to re launch a major new auto model in the middle of a.