Slate Money: COVID-19 – March 25, 2020

Episode Overview

This special midweek episode of Slate Money, hosted by Felix Salmon with co-hosts Emily Peck and Anna Szymanski, dives into the monumental $2 trillion COVID-19 stimulus bill being passed by Congress, the limitations of the U.S. government structure in addressing the pandemic, and compares the American response to those in other countries. The hosts discuss the implications of the economic measures being instituted, the reality behind "saving the economy," and what the crisis could mean for the U.S. social and political landscape going forward.

Key Discussion Points & Insights

1. The $2 Trillion Stimulus: Scope and Expectations

• The hosts open by contextualizing the unprecedented scale of the economic rescue bill. Felix highlights the government and Fed efforts:

  “There is $2 trillion of money which Congress has agreed to spend, which is then going to be multiplied... by the Fed... so it all adds up to about $6 trillion... which sounds great, except for that we don't seem to have made so much as a dent on the actual health crisis.” (Felix, 00:36)

• They note that while the stimulus provides economic relief, it doesn’t directly address the underlying health crisis.

2. The False Economy vs. Lives Debate

• Felix raises the debate over reopening the economy versus protecting public health, referencing President Trump’s push to reopen business by Easter and accusations that political leaders are sacrificing lives for the market’s sake (02:09).
• Emily sharply critiques this notion:

  “It’s idiotic to prioritize stocks over human lives at the scale we’re talking about right now... Every human life contributes to GDP and contributes to the economy... If you care about the economy so much, actually, you need to save lives for that reason, too.” (Emily, 03:05)

• The group reaffirms the interconnectedness of lives and economic stability, emphasizing there is no real tradeoff:

  "It's not a choice between the stock market and the real economy of people's lives. Like, they are intricately connected." (Anna, 05:27)

3. Challenges in U.S. Governance and Crisis Response

• Felix laments the fragmented nature of the U.S. governmental response, citing state-level shutdowns and lack of federal coordination:

  “I do think that one of the big problems facing the United States is the fact that really the government doesn't exist... The actual decisions to lock down... are done at the state level by governors... The one thing we really need is all of the 50 state governors to be on the same page... and there's no coordination mechanism for that.” (Felix, 06:18)

• Emily points out the lack of strong leadership at the federal level:

  “There's a failure of leadership at the top... In a usual crisis, the President of the United States is able to sort of marshal all the states, marshal some kind of uniform action and policy... In this case, there’s a real failure of leadership.” (Emily, 07:30)

• Felix and Anna contrast this with centralized responses in other democracies, like the U.K. and India, where leaders could quickly implement nationwide orders (Felix, 07:57).

4. International Comparisons

• The hosts discuss how cultures used to “siege mentality,” such as South Korea or Israel, have better rallied citizens:

  “Countries that are in more of a siege mentality, that are like in wars or kind of cold wars... are doing a better job marshaling their citizens and getting them to... fight the virus. Because these are populations that are kind of used to being under siege and at war.” (Emily, 11:18)

• Anna notes the value of state/city autonomy but also acknowledges pitfalls in the lack of unified action (Anna, 09:26).
• Felix highlights the effectiveness of Germany and Denmark, crediting their strong public health systems and early responses (Felix, 10:31).

5. Will the Stimulus Actually Help?

• Emily praises the expanded unemployment insurance for “gig workers and contract workers, which is a big deal” and generally supports its generous terms:

  “[Unemployment insurance] beefs up so that some people who get laid off can get 100% wage replacement on the lower end... even extends unemployment insurance to gig workers and contract workers, which is a big deal.” (Emily, 13:17)

• There’s skepticism about corporate aid, particularly regarding possible “random pork” and bailouts for large corporations (Felix, 14:19).
• On the structure of aid:

  “The government wants to give... super senior loans, which means that if... the company winds up going through bankruptcy... the government will wind up with an equity stake... The same way that they want to do the small business loans is to say these are forgivable loans, but they’re still loans... It’s a relatively sensible way of doing it.” (Felix, 14:19)

• Concerns are raised about small business survival, deepening inequality, and the potential long-term impacts on the economy:

  “It’ll be interesting to see who makes it and what kind of society we come out with after that. Like how much inequality is exacerbated by this crisis.” (Emily, 15:51)

6. Policy Changes on the Horizon

• The hosts see this as a moment of massive shifts in what is politically possible:

  “We’re already seeing policies being put forward that would have seemed unimaginable a month ago. So you do wonder if maybe, I don’t know, maybe when we come out of this, policies such as giving better access to healthcare... could actually be more possible because... we’ve just broken [the Overton window] with the sledgehammer.” (Anna, 16:27)

• Felix foreshadows the coming crisis in healthcare debt from COVID-19, suggesting whatever the government does next may reshape the U.S. healthcare system permanently (Felix, 17:31).

Notable Quotes & Memorable Moments

• “Do not open Twitter. It just doesn’t help in any way.” (Felix Salmon, 02:09)
• “It’s idiotic to prioritize stocks over human lives at the scale we’re talking about.” (Emily Peck, 03:05)
• “The only thing that will solve the problem is getting a handle on the health crisis.” (Felix Salmon, 04:41)
• “In the United States, even if Trump wanted to do [a nationwide lockdown], which he clearly doesn’t, there doesn’t seem to be anyone in a position to do that.” (Felix Salmon, 08:36)
• “We’re not really prepared to sort of like get all together as a country and fight a thing. Like, that’s just not our jam anymore.” (Emily Peck, 11:18)
• “We have not just widened the Overton window; we’ve just broken it with the sledgehammer.” (Anna Szymanski, 17:05)

Important Timestamps

• $2 Trillion Stimulus Overview: 00:36–01:42
• 'Sacrificing Lives for the Stock Market' Debate: 02:09–05:27
• Federal Structure & Coordination Challenges: 06:18–07:57
• International Response Comparisons: 07:57–11:18
• Stimulus Bill Provisions & Critique: 13:17–15:51
• Future Policy & Inequality: 16:27–17:31

Conclusion

This episode of Slate Money delivers a candid, sometimes caustic, analysis of the U.S. COVID-19 stimulus efforts and the systemic challenges undermining an effective response. The hosts illuminate the interconnected nature of economic and public health outcomes, caution against simplistic “reopen now” rhetoric, and highlight how the crisis could fundamentally alter political and policy landscapes for years to come.

Note: Skip to the Saturday main episode for a deeper dive into the longer-term repercussions for healthcare policy and economic resilience.