Krugman Says Fiscal Response to Virus Has Been Insufficient on Several Fronts

The transcript discusses the insufficiency of the fiscal response to economic challenges, particularly the Paycheck Protection Program (PPP) and unemployment benefits. It highlights the need for better distribution of funds and suggests improvements such as federalizing unemployment benefits and providing aid to state and local governments. The speaker critiques the current measures and proposes solutions to enhance economic recovery during widespread shelter-in-place orders.

What is one major criticism of the Paycheck Protection Program (PPP) mentioned in the video?

• It was only available to businesses in certain states.

• Funds were misallocated and did not reach the intended small businesses.

• It was too difficult for large corporations to access.

• It provided too much money to small businesses.

Why is the current management of unemployment benefits considered problematic?

• The benefits are too generous and discourage job seeking.

• It is only available to people who lost jobs due to COVID-19.

• States are overwhelmed and unable to manage the demand effectively.

• The federal government is handling it directly.

What is one recommendation given to improve the unemployment benefits system?

• Limit benefits to only essential workers.

• Implement a federal program similar to Canada's.

• Increase the amount of benefits provided.

• Require weekly job applications to receive benefits.

What is suggested as a necessary step to support state and local governments?

• Reduce taxes for local businesses.

• Limit spending on public services.

• Encourage states to increase their own taxes.

• Provide several hundred billion dollars in aid.

Which country's model is recommended for managing unemployment benefits?

• United Kingdom

• Australia

• Canada

• Germany