The Good, the Bad, and the Ugly of the Response to COVID-19

Econ Buff Podcast #14 with Rex Pjesky

https://www.youtube.com/watch?v=WRpRwD_71ek

Dr. Rex Pjesky and I have a wide ranging discussion about the various government responses to the novel coronavirus. We categorize the responses into the good, the bad and the ugly. Dr. Pjesky gives his view on the extensions to Unemployment Insurance, and praises its targeted nature. We talk about the Paycheck Protection Program, and the importance of connections between businesses and their employees. I make the case for why markets should decide which of these connections stay in place. We consider stimulus checks and Dr. Pjesky highlights the shortcomings of the stimulus and its implementation. Dr. Pjesky lays out why the payroll tax credit is infeasible to implement on a large scale and how loans to state and local governments might play an important role in how states finance their coronavirus response. I make the case that these loans have a potential downside of giving the national government undue leverage over state governments and their policy choices. We explore the problems with the bailouts, particularly of the airlines, and how Dr. Pjesky views the government investigating price gouging and profiteering.