Summary of "Verdict with Ted Cruz" Episode: "How Do We Start The Economy Again?"

Release Date: April 3, 2020
Host: Senator Ted Cruz
Guest: Michael Knowles
Podcast: Verdict with Ted Cruz

Introduction: The Dual Crises

The episode opens with Michael Knowles highlighting the severe economic downturn caused by the COVID-19 pandemic. He states, "[...] 10 million Americans have lost their jobs in two weeks. At what point does this shutdown become economically untenable?" (00:48). Senator Ted Cruz responds by acknowledging the simultaneous public health and economic crises, emphasizing the government's role in exacerbating the economic downturn through policies aimed at addressing the health emergency.

Balancing Public Health and Economic Stability

Cruz elaborates on the delicate balance between combating the virus and mitigating economic fallout. He points out, "We have got two disasters that are playing out simultaneously. We've got the public health crisis, and it is real [...] At the same time, we've got an economic crisis that's playing out" (00:48). He underscores the necessity of defeating the pandemic to end the economic calamity, asserting that "when we defeat the disease" the economic situation will improve (01:55).

The Challenge of Policy Decisions and Leadership Accountability

The discussion shifts to the challenges faced by leaders in making policy decisions that balance health and economic concerns. Cruz uses a hypothetical scenario to illustrate the immense pressure on leaders: "Would you wanna be the mayor who said, okay, everybody go back to work, everyone go back to the restaurant. And then two weeks later, 500 people die in your city?" (03:37). He emphasizes the importance of listening to scientific experts to avoid overwhelming the healthcare system.

Criteria for Easing Restrictions

When asked about the government's criteria for lifting shutdown measures, Cruz shares insights from his conversations with Dr. Fauci and Treasury Secretary Steven Mnuchin. He explains, "We're looking at cases, we're looking at hospitalizations, we're looking at those who are in critical conditions, and we're looking at deaths" (05:42). Cruz acknowledges the uncertainty in predicting the pandemic's trajectory, noting that even as some indicators improve, others may still be on the rise.

Critique of Media Reporting and Accountability for China

Cruz criticizes the American mainstream media for uncritically reporting on China's handling of the pandemic. He claims, "We do know the Chinese Communist government, they tried to cover up this outbreak [...] So imagine a different world when this outbreak first started in Wuhan, if the Chinese government had brought in health experts, if they'd quarantined the first people, we could have stopped maybe this epidemic from becoming a pandemic" (09:38). He calls for accountability, suggesting that the virus's proximity to the Wuhan Institute of Virology raises questions about its origin.

Personal Anecdote: April Fool's Day Amid Quarantine

Shifting to a lighter tone, Cruz shares a personal story about celebrating April Fool's Day with his family during quarantine. This segment illustrates the human side of political figures coping with unprecedented circumstances, highlighting the universal challenges of lockdowns.

Audience Q&A: Financial Relief Measures

1. Social Security Tax Returns

A listener, Mimi, asks about the need for Social Security recipients to file a new tax return. Cruz responds, "That was a stupid policy. It was a stupid idea. A number of us were quite critical of it. And thankfully yesterday treasury rescinded it" (16:12). He commends the Treasury Department for reversing the requirement, ensuring that vulnerable individuals receive relief without additional bureaucratic hurdles.

2. 401(k) Required Minimum Distributions

Another listener, JJ, inquires about the possibility of relaxing required minimum distributions from 401(k) plans due to the depressed stock market. Cruz affirms, "The answer is yes. And that was in the bill that passed Congress" (17:22). He explains that the legislation halts required distributions and lifts penalties for accessing retirement savings, providing greater financial flexibility during the economic crisis.

3. Small Business Administration (SBA) Relief

Concern is raised about delays and confusion surrounding SBA loan applications. Cruz offers reassurance: "It is supposed to be live and starting as soon as tomorrow, as soon as Friday" (18:25). He advises small business owners to visit the SBA website and consult local lenders, explaining that loans up to $10 million are available and may be forgiven if used for payroll, rent, or utilities, effectively converting them into grants.

Federal Borrowing and National Debt Concerns

Addressing questions about the federal government's borrowing limits, Cruz acknowledges the unprecedented nature of the crisis: "Last week, Congress spent $2 trillion in an afternoon. I mean, that's nearly 10% of our total national debt" (20:47). He defends the massive expenditure as necessary, emphasizing the unanimous Senate support and the critical need to support businesses and prevent further economic deterioration.

Impact on the Presidential Election

The conversation turns to the upcoming presidential election amidst the pandemic. A listener question about Joe Biden's potential competency issues leads Cruz to speculate on possible Democratic responses, mentioning, "I've heard more than a little speculation that get to the convention, Democrats are going to want to pull the plug and abandon ship" (23:30). He highlights the potential for leadership scrutiny, stating, "The longer this crisis continues, the more the question for every voter is going to be what leader do I trust to lead this country in a time of crisis" (25:40).

Conclusion

Michael Knowles wraps up the episode by summarizing the discussions and emphasizing the uncertainty surrounding the pandemic's duration and impact. He encourages listeners to stay informed and anticipates addressing more questions in future episodes.

Notable Quotes:

• Economic and Public Health Crises:
  "We have got two disasters that are playing out simultaneously. We've got the public health crisis, and it is real [...] At the same time, we've got an economic crisis that's playing out." (00:48)

• Balancing Health and Economy:
  "When we defeat the disease, that's when the economic calamity is gonna end." (01:55)

• Leadership Accountability:
  "Would you wanna be the mayor who said, okay, everybody go back to work, everyone go back to the restaurant. And then two weeks later, 500 people die in your city?" (03:37)

• Media Critique:
  "The American media just parrot propaganda. I, I don't think is helpful." (08:27)

• Social Security Relief:
  "That was a stupid policy. It was a stupid idea. [...] thankfully yesterday treasury rescinded it." (16:12)

• Small Business Support:
  "That loan, if you use those loan proceeds to pay for payroll for your employees, to pay for mortgage or rent for your business, or to pay for utilities, that amount of the loan that is paid for, that is used for those purposes, will be forgiven." (19:05)

Final Thoughts

This episode of "Verdict with Ted Cruz" delves into the multifaceted challenges posed by the COVID-19 pandemic, exploring the intersection of public health measures and economic impacts. Senator Cruz provides his perspective on government policies, media reporting, and the broader implications for leadership and the upcoming election. Through audience questions, he offers practical information on financial relief measures, emphasizing the government's efforts to mitigate the crisis's economic fallout. The discussion underscores the complexity of navigating unprecedented times and the critical need for informed, balanced decision-making.