Podcast Summary: "The Cost Of Coronavirus" on The 47 Morning Update with Ben Ferguson

Release Date: March 20, 2020
Host: Ben Ferguson
Guest: Senator Ted Cruz
Source: Transcript provided from Verdict with Ted Cruz

Introduction

In the episode titled "The Cost Of Coronavirus," host Ben Ferguson engages in a comprehensive discussion with Senator Ted Cruz about the burgeoning coronavirus crisis and its multifaceted impact on the United States. The conversation delves into federal response plans, economic repercussions, the role of government in crisis management, international accountability, and the pressing questions surrounding the virus's origin.

Federal Response to the Coronavirus

Three-Part Plan Overview
Senator Cruz outlines a three-part federal strategy to combat the coronavirus pandemic:

• First Tranche: Over two weeks ago, Congress approved an $8.3 billion emergency appropriation aimed at bolstering health resources to tackle the pandemic.

• Second Tranche: Recently passed legislation focusing on paid sick leave, replenishing unemployment compensation, and providing free coronavirus testing. Cruz highlights his support for these measures, despite concerns about mandates on small businesses:

  "I had real concerns with the bill we passed because it puts a mandate on small businesses to provide paid sick leave... I am very concerned that's gonna result in putting additional regulatory burden on small businesses that could drive some of them out of business." [02:19]

Anticipation of Third Tranche
The third and most substantial component is anticipated to involve a massive financial stimulus, potentially ranging from $1.2 trillion to $1.3 trillion. Cruz mentions Mitch McConnell's role in filing the initial bill and notes the minimal negotiation with Democrats thus far:

"Part three, by all expectations is gonna be massive. I mean, we're hearing numbers of a trillion dollars... So what all is in it?" [04:12]

Direct Financial Assistance
A key element of the third tranche includes direct financial assistance to American citizens:

"It's designed to send Every American adult $1,200 a check... if you earn $75,000 or less as an individual or $150,000 or less as a couple." [05:52]

Cruz distinguishes this approach from proposals by figures like Andrew Yang, emphasizing the one-time nature of the stimulus in contrast to ongoing payments.

Economic Impact

Massive Job Losses Forecasted
Cruz expresses grave concerns about the anticipated economic fallout, predicting over a million job losses:

"I would not be surprised next week or the week after to see job numbers, to see over a million jobs lost." [08:20]

Sectoral Devastation
Key industries are facing unprecedented challenges:

• Airlines: Massive layoffs and grounded fleets are leading to significant financial losses. Cruz recounts the near-empty flights:

  "I think there may be 15 people on my plane. I mean, I sat where I was sitting, there was nobody next to me." [09:00]

• Hotels: Occupancy rates plummet to as low as 6%, signaling severe downturns.

• Energy Sector: Oversupply issues compounded by geopolitical tensions, such as with Saudi Arabia, are driving oil prices down. Energy CEOs report halting numerous rigs and laying off thousands:

  "Both of these CEOs said they'd laid off over 5,000 people in the last week." [10:27]

Personal Accounts
Michael Knowles adds personal anecdotes about individuals losing their jobs, highlighting the widespread human impact beyond corporate reports.

Bailouts and Conservative Perspectives

Comparison to TARP
Cruz debates the conservative stance on government bailouts by contrasting the current pandemic response with the Troubled Asset Relief Program (TARP) from the financial crisis:

"The financial meltdown was caused in significant part by the conduct of the financial sector... It was felt like a rigged system." [10:49]

Rationale for Current Bailouts
He argues that unlike TARP, the current crisis stems from unforeseen government-imposed lockdowns, not malfeasance within industries:

"If you own a hotel, it's not your fault there's a global pandemic... these harms are caused by government orders." [13:00]

Constitutional Justifications
Cruz draws parallels with the Constitution's takings clause, suggesting that while government interventions for public use are permissible, just compensation is warranted when private businesses are adversely affected:

"The takings clause provides that private property shall not be Taken for public use without just compensation." [13:45]

Accountability and the Role of the Chinese Government

Blame on Chinese Government
Cruz emphasizes the Chinese Communist Party's responsibility for suppressing information and delaying global response:

"The Chinese Communist government bears a lot of fault for suppressing information... their conduct has gotten even worse." [14:06]

Media Complicity
He criticizes the American press for failing to hold China accountable, suggesting financial incentives and propaganda influence media narratives:

"The American press on this has been... acting like employees of the Communist government of China." [16:19]

Lab Leak Theories
Addressing the origin of the virus, Cruz raises questions about the Wuhan Institute of Virology and the possibility of a lab-related escape, advocating for thorough investigation:

"What we do know is there are only 32 level 4 labs on planet Earth... it certainly raises some questions why the outbreak occurs where there is a government lab." [21:00]

Call for Accountability
He calls for post-crisis examination and accountability concerning China's handling of the outbreak:

"There needs to be some real accountability... but I think it needs to be after the crisis has passed." [17:47]

Future Outlook and Priorities

Uncertainty in Reopening
When pressed about timelines for returning to work, Cruz acknowledges the uncertainty and the challenges in predicting the virus's spread:

"You know, we don't know." [24:53]

Four Priority Areas
Senator Cruz outlines four key priorities to address the pandemic effectively:

1. Testing: Enhancing the availability and accuracy of coronavirus testing.

   "Number one, testing, making testing more readily available and making it more accurate." [26:00]

2. Protective Gear: Ensuring adequate supply of masks, gloves, and disinfectants, especially for first responders and healthcare workers.

   "Number two is protective gear... we need to make sure we have enough protective gear." [26:15]

3. Health Capacity and Equipment: Expanding hospital capacities and securing critical equipment like ventilators to handle a potential surge in patients.

   "Number three is health capacity and equipment... make sure our hospitals can handle a surge." [26:30]

4. Focusing on Cures: Streamlining the FDA approval process to accelerate the development and distribution of vaccines and treatments.

   "Number four critical priority area is focusing on cures... streamline the FDA approval process." [26:45]

Cruz stresses the importance of these priorities to prevent scenarios similar to Italy's overwhelmed healthcare system.

Conclusion

In wrapping up the discussion, both hosts acknowledge the unprecedented nature of the crisis and the lingering uncertainties. They underscore the necessity of staying informed and adapting to the evolving situation as the U.S. navigates both public health and economic challenges.

Notable Quotes:

• "This has been voted on and it will be voted on in three parts and maybe more." — Senator Ted Cruz [02:19]

• "They're making layoffs... Every CEO I talk to is making layoffs and making big layoffs." — Senator Ted Cruz [08:20]

• "The Chinese Communist government bears a lot of fault for suppressing information." — Senator Ted Cruz [14:06]

• "We didn't know when people can start getting back to work." — Senator Ted Cruz [24:53]

This episode provides a thorough examination of the immediate and projected impacts of the coronavirus pandemic from a political and economic standpoint, offering listeners insightful perspectives on government actions, industry challenges, and the broader implications for American society.