>>> ARE YOU ON THE VERGE OF LOSING YOUR LIFE SAVINGS OR YOUR

LOSING YOUR LIFE SAVINGS OR YOUR JOB?

JOB? HERE’S ONE ANSWER.

HERE’S ONE ANSWER. >> WE HAVE A GREAT ECONOMY.

>> WE HAVE A GREAT ECONOMY. WE HAVE A VERY STRONG ECONOMY,

WE HAVE A VERY STRONG ECONOMY, BUT THIS CAME -- THIS BLINDSIDED

BUT THIS CAME -- THIS BLINDSIDED THE WORLD, AND I THINK WE’VE

THE WORLD, AND I THINK WE’VE HANDLED IT VERY, VERY WELL.

HANDLED IT VERY, VERY WELL. >> THAT WAS THE PRESIDENT AFTER

>> THAT WAS THE PRESIDENT AFTER THE STOCK MARKET COLLAPSED AGAIN

THE STOCK MARKET COLLAPSED AGAIN TODAY AT THE WHITE HOUSE PRESS

TODAY AT THE WHITE HOUSE PRESS BRIEFING ON CORONAVIRUS WHERE

BRIEFING ON CORONAVIRUS WHERE THE PRESIDENT MADE VERY BRIEF

THE PRESIDENT MADE VERY BRIEF REMARKS BEFORE, IN EFFECT,

REMARKS BEFORE, IN EFFECT, FLEEING THE BRIEFING ROOM WHILE

FLEEING THE BRIEFING ROOM WHILE VICE PRESIDENT PENCE AND OTHERS

VICE PRESIDENT PENCE AND OTHERS TOOK A FEW QUESTIONS.

TOOK A FEW QUESTIONS. EARLIER IN THE DAY, THE

EARLIER IN THE DAY, THE PRESIDENT BLAMED THE SINKING

PRESIDENT BLAMED THE SINKING STOCK MARKET ON, QUOTE, FAKE

STOCK MARKET ON, QUOTE, FAKE NEWS.

NEWS. BUT THE NEWS ABOUT CORONAVIRUS

BUT THE NEWS ABOUT CORONAVIRUS IS VERY REAL AND IT IS NOT GOING

IS VERY REAL AND IT IS NOT GOING TO GET BETTER QUICKLY, WHICH IS

TO GET BETTER QUICKLY, WHICH IS WHY THE TRUMP ADMINISTRATION IS

WHY THE TRUMP ADMINISTRATION IS NOW PROPOSING EMERGENCY

NOW PROPOSING EMERGENCY LEGISLATION TO TRY TO HEAD OFF A

LEGISLATION TO TRY TO HEAD OFF A RECESSION.

RECESSION. BEFORE LEAVING THE BRIEFING

BEFORE LEAVING THE BRIEFING TONIGHT, DONALD TRUMP IDENTIFIED

TONIGHT, DONALD TRUMP IDENTIFIED ONE PROPOSAL TO COUNTER THE

ONE PROPOSAL TO COUNTER THE ECONOMIC EFFECTS OF THE

ECONOMIC EFFECTS OF THE CORONAVIRUS CRISIS.

CORONAVIRUS CRISIS. >> WE’RE GOING TO BE MEETING

>> WE’RE GOING TO BE MEETING WITH HOUSE REPUBLICANS, MITCH

WITH HOUSE REPUBLICANS, MITCH McCONNELL, EVERYBODY, AND

McCONNELL, EVERYBODY, AND DISCUSSING A POSSIBLE PAYROLL

DISCUSSING A POSSIBLE PAYROLL TAX CUT OR RELIEF, SUBSTANTIAL

TAX CUT OR RELIEF, SUBSTANTIAL RELIEF, VERY SUBSTANTIAL RELIEF.

RELIEF, VERY SUBSTANTIAL RELIEF. THAT’S A BIG NUMBER.

THAT’S A BIG NUMBER. >> JOINING OUR DISCUSSION NOW IS

>> JOINING OUR DISCUSSION NOW IS AUSTIN GOOLSBEE, FORMER CHAIRMAN

AUSTIN GOOLSBEE, FORMER CHAIRMAN OF THE COUNCIL OF ECONOMIC

OF THE COUNCIL OF ECONOMIC ADVISERS FOR PRESIDENT OBAMA.

ADVISERS FOR PRESIDENT OBAMA. HE’S NOW A PROFESSOR OF

HE’S NOW A PROFESSOR OF ECONOMICS AT THE UNIVERSITY OF

ECONOMICS AT THE UNIVERSITY OF CHICAGO.

CHICAGO. PROFESSOR GOOLSBEE, YOUR

PROFESSOR GOOLSBEE, YOUR REACTION TO WHAT THE MARKET IS

REACTION TO WHAT THE MARKET IS DOING, WHAT THE ECONOMY LOOKS

DOING, WHAT THE ECONOMY LOOKS LIKE SIX MONTHS FROM NOW IF WE

LIKE SIX MONTHS FROM NOW IF WE CAN TELL, AND THE PRESIDENT’S

CAN TELL, AND THE PRESIDENT’S LATEST IDEA OF A PAYROLL TAX

LATEST IDEA OF A PAYROLL TAX CUT?

CUT? >> WELL, LOOK, THE MARKET WAS

>> WELL, LOOK, THE MARKET WAS BORDERLINE IN TERROR.

BORDERLINE IN TERROR. IT STARTED.

IT STARTED. WE HAD ONE OF THE WORST WEEKS IN

WE HAD ONE OF THE WORST WEEKS IN MANY YEARS, AND THEN THE FLIGHT

MANY YEARS, AND THEN THE FLIGHT TO SAFETY AS THE FINANCE PEOPLE

TO SAFETY AS THE FINANCE PEOPLE CALL IT OF PEOPLE BUYING UP

CALL IT OF PEOPLE BUYING UP TREASURY BONDS BECAUSE THEY

TREASURY BONDS BECAUSE THEY THINK THEY’RE THE SAFEST ASSET

THINK THEY’RE THE SAFEST ASSET IN THE WORLD, LITERALLY BROUGHT

IN THE WORLD, LITERALLY BROUGHT THE INTEREST RATE TO THE LOWEST

THE INTEREST RATE TO THE LOWEST IT’S EVER BEEN, LOWER THAN IN

IT’S EVER BEEN, LOWER THAN IN THE FINANCIAL CRISIS, LOWER THAN

THE FINANCIAL CRISIS, LOWER THAN EVER.

EVER. AND YOU SAW TODAY THE MARKET

AND YOU SAW TODAY THE MARKET DROPS.

DROPS. PEOPLE ARE NERVOUS.

PEOPLE ARE NERVOUS. THEY LOOK AT CHINA.

THEY LOOK AT CHINA. THEY LOOK AT ITALY.

THEY LOOK AT ITALY. THEY SEE THAT THERE IS SEVERE

THEY SEE THAT THERE IS SEVERE SLOWDOWNS IN PLACES WHERE THEY

SLOWDOWNS IN PLACES WHERE THEY HAVE TO IMPOSE THESE

HAVE TO IMPOSE THESE QUARANTINES.

QUARANTINES. AND WE’RE ON THE BRINK OF WHAT

AND WE’RE ON THE BRINK OF WHAT MAY BE THE BIGGEST PANDEMIC IN

MAY BE THE BIGGEST PANDEMIC IN OVER A CENTURY, AND IT’S CLEAR

OVER A CENTURY, AND IT’S CLEAR THE WHITE HOUSE HAS NO IDEA

THE WHITE HOUSE HAS NO IDEA WHAT’S GOING ON.

WHAT’S GOING ON. THEY’RE NOT TESTING.

THEY’RE NOT TESTING. WE HAD THE PRESIDENT OF THE

WE HAD THE PRESIDENT OF THE UNITED STATES HIMSELF GET UP A

UNITED STATES HIMSELF GET UP A FEW DAYS AGO AND SAY, WE HAVE

FEW DAYS AGO AND SAY, WE HAVE ONLY 14 CASES, AND PRETTY SOON

ONLY 14 CASES, AND PRETTY SOON THAT WILL BE DOWN TO ZERO.

THAT WILL BE DOWN TO ZERO. AND PUBLIC HEALTH OFFICIALS IN

AND PUBLIC HEALTH OFFICIALS IN THE UNITED STATES AND AROUND THE

THE UNITED STATES AND AROUND THE WORLD JUST KIND OF LOOKED AT

WORLD JUST KIND OF LOOKED AT EACH OTHER AND SAID, OH, MY GOD.

EACH OTHER AND SAID, OH, MY GOD. IS THERE NOT A PLAN TO TRY TO

IS THERE NOT A PLAN TO TRY TO SLOW THE SPREAD OF THIS VIRUS

SLOW THE SPREAD OF THIS VIRUS BECAUSE THAT IS THE CRITICAL

BECAUSE THAT IS THE CRITICAL THING FOR HELPING THE ECONOMY.

THING FOR HELPING THE ECONOMY. THE REASON THAT PEOPLE GETTING A

THE REASON THAT PEOPLE GETTING A PAYROLL TAX CUT IS PROBABLY NOT

PAYROLL TAX CUT IS PROBABLY NOT THE RIGHT ANSWER IS BECAUSE, A,

THE RIGHT ANSWER IS BECAUSE, A, A BUNCH OF PEOPLE ARE GOING TO

A BUNCH OF PEOPLE ARE GOING TO LOSE THEIR JOBS, SO THEY DON’T

LOSE THEIR JOBS, SO THEY DON’T PAY PAYROLL TAX.

PAY PAYROLL TAX. A BUNCH OF PEOPLE ARE RETIRED,

A BUNCH OF PEOPLE ARE RETIRED, SO THEY DON’T PAY ANY PAYROLL

SO THEY DON’T PAY ANY PAYROLL TAX.

TAX. BUT EVEN IF YOU GIVE THE PEOPLE

BUT EVEN IF YOU GIVE THE PEOPLE A PAYROLL TAX CUT, THEY’RE NOT

A PAYROLL TAX CUT, THEY’RE NOT GOING OUT OF THEIR HOUSE BECAUSE

GOING OUT OF THEIR HOUSE BECAUSE THEY’RE AFRAID TO GO TO PUBLIC

THEY’RE AFRAID TO GO TO PUBLIC PLACES.

PLACES. AND A LARGE SHARE OF THE U.S.

AND A LARGE SHARE OF THE U.S. ECONOMY ARE SERVICES AND THE

ECONOMY ARE SERVICES AND THE FACE-TO-FACE KIND OF ACTIVITIES

FACE-TO-FACE KIND OF ACTIVITIES THAT ARE EXACTLY WHAT GET

THAT ARE EXACTLY WHAT GET HAMMERED IN THIS KIND OF A FEAR

HAMMERED IN THIS KIND OF A FEAR CRISIS.

CRISIS. AND SO I DON’T REALLY SEE THAT

AND SO I DON’T REALLY SEE THAT THE PAYROLL TAX IS THE OBVIOUS

THE PAYROLL TAX IS THE OBVIOUS FIRST STEP ON THAT.

FIRST STEP ON THAT. >> IS THERE A FIRST STEP TO TAKE

>> IS THERE A FIRST STEP TO TAKE HERE TO DEAL WITH WHAT THE

HERE TO DEAL WITH WHAT THE ECONOMIC CONDITIONS YOU FORESEE

ECONOMIC CONDITIONS YOU FORESEE AND ANY -- AND WHAT THE STOCK

AND ANY -- AND WHAT THE STOCK MARKET’S DOING?

MARKET’S DOING? >> YEAH.

>> YEAH. LOOK, I THINK THERE ARE SEVERAL

LOOK, I THINK THERE ARE SEVERAL FIRST STEPS, AND THE BACKDROP TO

FIRST STEPS, AND THE BACKDROP TO THE FIRST STEPS ARE WE HAVE TO

THE FIRST STEPS ARE WE HAVE TO HOPE THAT THIS CORONAVIRUS

HOPE THAT THIS CORONAVIRUS FOLLOWS THE PATTERN OF A FLU

FOLLOWS THE PATTERN OF A FLU VIRUS, NOT AN EBOLA VIRUS, WHICH

VIRUS, NOT AN EBOLA VIRUS, WHICH IS TO SAY THAT IF WE GET TO

IS TO SAY THAT IF WE GET TO WARMER WEATHER AND IN THE

WARMER WEATHER AND IN THE SUMMER, THAT WE MIGHT HAVE SOME

SUMMER, THAT WE MIGHT HAVE SOME KIND OF A RESPITE, THAT THE

KIND OF A RESPITE, THAT THE INFECTION RATES MIGHT GO DOWN.

INFECTION RATES MIGHT GO DOWN. SO THE FIRST THING IS YOU DON’T

SO THE FIRST THING IS YOU DON’T WANT TO HAVE PEOPLE HAVING TO GO

WANT TO HAVE PEOPLE HAVING TO GO BANKRUPT, AND YOU DON’T WANT TO

BANKRUPT, AND YOU DON’T WANT TO HAVE TO HAVE THEM GO TO WORK

HAVE TO HAVE THEM GO TO WORK WHEN THEY’RE SICK.

WHEN THEY’RE SICK. SO I THINK PAID LEAVE IS AN

SO I THINK PAID LEAVE IS AN ABSOLUTE FIRST STEP THAT WE

ABSOLUTE FIRST STEP THAT WE OUGHT TO BE GETTING EVERYBODY

OUGHT TO BE GETTING EVERYBODY PAID LEAVE.

PAID LEAVE. AND THE THING ABOUT VIRUS

AND THE THING ABOUT VIRUS ECONOMICS, AS I SAY, THAT MAKES

ECONOMICS, AS I SAY, THAT MAKES IT DIFFERENT THAN REGULAR IS

IT DIFFERENT THAN REGULAR IS THAT WITH VIRUS ECONOMICS, THE

THAT WITH VIRUS ECONOMICS, THE BEST THING YOU COULD DO FOR THE