Intervention Is Needed to Right the U.S. Economy, Says Glenn Hubbard

The transcript discusses the challenges of supply side economics amid new debt due to the pandemic. It emphasizes the need for economic recovery strategies, including business incentives and employment support. The importance of testing and gradual reopening is highlighted, along with concerns about economic intervention and potential Japanification. The discussion includes expert opinions on balancing economic support and unwinding interventions.

What is a key strategy mentioned for supporting the economy during the pandemic?

• Reducing taxes for large corporations

• Borrowing to cushion employment and business

• Increasing tariffs on imports

• Cutting social insurance programs

Why is testing considered crucial in the process of reopening the economy?

• To reduce the cost of healthcare

• To determine the presence of the disease and antibodies

• To increase government revenue

• To ensure businesses can operate at full capacity

What is a potential risk of reopening the economy too quickly?

• Increased government spending

• A return to full lockdown

• Decreased consumer confidence

• Higher interest rates

What is the concern related to the economic intervention during the pandemic?

• It could result in a situation similar to Japan's economic stagnation

• It will lead to a surplus in the national budget

• It will cause a rapid increase in employment

• It might lead to a decrease in inflation

What is the eventual goal after the economic intervention during the pandemic?

• To increase taxes on small businesses

• To reduce the national debt immediately

• To unwind government and Fed support

• To maintain permanent government support