Podcast Summary: The 47 Morning Update with Ben Ferguson

Episode Title: What’s Actually In The Senate Relief Bill
Release Date: March 26, 2020
Host: Premiere Networks
Guest: Senator Ted Cruz
Duration: Approximately 32 minutes

Introduction

In this episode of The 47 Morning Update with Ben Ferguson, host Ben Ferguson engages in a comprehensive discussion with Senator Ted Cruz regarding the recently passed Senate relief bill amidst the COVID-19 pandemic. The conversation delves into the specifics of the $2 trillion emergency relief package, its components, the political dynamics surrounding its passage, and the broader economic implications for America.

Senate Relief Bill Overview

Senator Cruz provides an overview of the Senate's unanimous 96-0 vote on the $2 trillion relief package, emphasizing its unprecedented size and the urgency necessitated by the pandemic.

• Unanimous Support:
  “Every single Republican voted yes. Every single Democrat voted yes. And we just passed out a $2 trillion emergency relief package...”
  (00:58)

• Historical Context:
  “$2 trillion is a crazy ton of money. I mean, that's 10% of our national debt, not our deficit. 10% of our national debt in over two centuries.”
  (03:26)

Individual Relief Provisions

A significant portion of the bill focuses on direct financial assistance to American citizens, aiming to alleviate immediate economic hardships caused by the pandemic.

• Direct Checks:
  “For every American in the country who makes under $100,000 a year, you're getting a check... Individual adults are getting 1200 each. A couple's getting 2,400 each...”
  (04:00)

• Timeliness and Scope:
  “These checks are expected to go out in two to three weeks. So sometimes, probably early to mid April is when those checks are gonna arrive.”
  (05:36)

• Unprecedented Nature:
  “The only thing comparable to this was during the 2008 crisis. There was a smaller set of rebate checks... But it wasn't nearly as significant as this.”
  (05:47)

Small Business Loan Program

The relief package allocates substantial funds to support small businesses, a critical component in preventing widespread business closures and ensuing unemployment.

• Loan Details:
  “There's $377 billion for small businesses. And this is an emergency loan program that is gonna go to small businesses, essentially businesses with 500 employees or less.”
  (07:06)

• Loan Forgiveness:
  “If you spend the money on payroll... then those loans are forgivable.”
  (07:06)

• Comparison to SBA Budget:
  “The Small Business Administration's budget, I think last year was $23 billion. This is $377 billion.”
  (08:32)

Unemployment Insurance Amendments

A contentious aspect of the bill involves enhancements to unemployment benefits, which Senator Cruz argues could disincentivize work.

• Enhanced Benefits:
  “The Democrats demanded... Increasing unemployment insurance compensation... adding $600 a week to what you can earn from unemployment.”
  (10:17)

• Amendment Proposal:
  “We introduced an amendment... you should not make more on unemployment than you were making working.”
  (12:09)

• Debate and Outcome:
  “Dick Durbin... was arguing back and forth... the amendment lost.”
  (12:10)

• Implications:
  “We're creating incentives where it would be perfectly rational to say, I'm not gonna go back to work because I make a lot more money on unemployment.”
  (12:55)

Delays in Voting and Political Maneuvering

Senator Cruz explains the reasons behind the delayed vote on the relief bill, attributing it to last-minute political tactics by Democratic leaders.

• Causes of Delay:
  “Nancy Pelosi came in at the last minute and she threw a hand grenade in. She began making all of these completely unrelated partisan demands.”
  (02:13)

• Impact of Delays:
  “...they blocked it on Sunday night, they blocked it Monday, all day Tuesday, all day today, until just about 11 o'clock last night when we finally got it passed.”
  (02:13)

COVID-19's Impact on the Senate

The episode also touches upon the personal impact of the pandemic within the Senate, notably Senator Rand Paul's positive COVID-19 test and the subsequent measures taken.

• Rand Paul's Diagnosis:
  “Rand Paul just tested positive for coronavirus... he had been swimming in the pool.”
  (16:51)

• Senate's Response:
  “Within an hour or two, two people self quarantined as a result, Mike Lee and Mitt Romney.”
  (16:51)

• Senator Cruz’s Concerns:
  “Rand with part of his lung removed is in a vulnerable position... we're worried and praying for Rand.”
  (18:24)

Concerns About Corporate Bailouts

While much of the relief bill focuses on individual and small business support, Senator Cruz expresses reservations about specific provisions that allocate funds to large corporations and industries.

• Stabilization Fund:
  “$500 billion for what's called the stabilization fund. Now, that's what the Democrats have been characterizing as the big corporation bailout.”
  (24:00)

• Loan Structure vs. Grants:
  “Almost all of that is structured as loans... So nobody's getting a special payment that they get to keep. No one's getting bailed out in that sense.”
  (28:00)

• Specific Industry Support:
  “There's 17 billion that is carved out, they say, for nationally security. Important companies like Boeing and GE... I fought hard against that.”
  (23:01)

• Airline Support Modification:
  “The Republicans' bipartisan bill had 58 billion for airlines as loans. Democrats insisted that 50% of it be grants.”
  (30:45)

Economic Principles and Recommendations

Drawing on expert advice, Senator Cruz discusses the economic rationale behind certain bill provisions, emphasizing the importance of maintaining liquidity to prevent a solvency crisis.

• Expert Consultation:
  “I called Art and he said... Do a payroll tax holiday... and ensure liquidity in the system.”
  (26:03)

• Payroll Tax Deferral:
  “Employers don't have to pay their half of the payroll taxes... it lowers the cost of employment.”
  (26:03)

• Preventing Solvency Crisis:
  “We don't wanna see the airlines suddenly have to auction off all their planes for 10 cents on the dollar.”
  (27:36)

Final Takeaways

Senator Cruz concludes with a message of resilience and optimism, reassuring listeners that despite the unprecedented challenges, America will navigate through the crisis by addressing both the health and economic aspects.

• Resilience:
  “America is a great country... We've overcome challenges before. We've overcome world wars, we've overcome nine, 11, and we will overcome this.”
  (31:27)

• Focus on Solutions:
  “We stop the economic devastation by solving the pandemic, contain it, develop effective vaccines and treatments.”
  (31:27)

Conclusion

This episode provides an in-depth examination of the Senate's COVID-19 relief bill from a Republican perspective, highlighting both the bipartisan efforts to address an unprecedented crisis and the ideological debates on the best approach to economic recovery. Senator Cruz offers a critical yet constructive analysis of the bill's provisions, advocating for measures that support individuals and small businesses while cautioning against potential long-term economic pitfalls.

Notable Quotes with Timestamps:

• “$2 trillion is a crazy ton of money... 10% of our national debt in over two centuries.” — Ted Cruz (03:26)
• “Individual adults are getting 1200 each. A couple's getting 2,400 each...” — Ted Cruz (04:00)
• “We're creating incentives where it would be perfectly rational to say, I'm not gonna go back to work because I make a lot more money on unemployment.” — Ted Cruz (12:55)
• “America is a great country... We've overcome challenges before... we will overcome this.” — Ted Cruz (31:27)

This summary encapsulates the key discussions, insights, and conclusions from the episode, providing a comprehensive overview for those who have not listened to the podcast.