Bloomberg News
@Bloomberg-News·2.8M subscribers·40.1K videos
World Leaders Are Chocking Off Economic Growth Trying to Stop Coronavirus
Posted
March 26, 2020
Views
689
Likes
10
Comments
4
Engagement
March 26, 2020
689
10
4
2.03%
Every word spoken in this episode is indexed. Type any phrase to jump straight to the moment it was said.
Type any word or phrase that may have been spoken. Click a result to seek the player to that exact moment.
Try a name, a topic, or a quoted line
See what was published immediately before and after this episode.
2:20Now PlayingWhatever is done to shut down the economy to stop the coronavirus is essential to protect companies as well as individuals, says Bloomberg Economics Editor Peter Coy. #Coronavirus #Covid19 #CoronavirusUS #Stimulus
If companies fail en masse, high-functioning teams that have taken years to assemble will fail. Synergies will be lost. Workers who thrive in a particular niche will strive to find new jobs from new employers who don't understand who they are or what they're capable of doing.
One elegant way to keep companies afloat is Germany's kurtzabeit, or short-work time, in which governments subsidize the salaries of workers who would otherwise be laid off.
Joseph Stiglitz, the Nobel laureate from Columbia University, advocates a super Chapter 11 that would avert mass insolvency. It's reasonable to impose conditions on the aid the companies get, such as caps on executive compensation, restrictions on dividends and buybacks.
It's also reasonable to pick and choose which industries to rescue. For example, airlines are a vital infrastructure, but casinos and cruise lines are not. Companies with valuable physical assets can bounce back relatively easily.
For example, the failure of a shale oil producer does no harm to the hydrocarbons that remain in the ground. Politics should play as little role as possible in bailout decisions. Bailouts of companies along with aid to individuals will be fantastically expensive, but that's because the need has never been greater.
The surest way to maintain support for the restrictions that protect the public from Covid-19 is to alleviate the damage that those restrictions do to the economy.
Subscribe to our YouTube channel
QUICKTAKE ON SOCIAL:
Follow QuickTake on Twitter: twitter.com/quicktake
Like QuickTake on Facebook: facebook.com/quicktake
Follow QuickTake on Instagram: instagram.com/quicktake
Subscribe to our newsletter
Email us at quicktakenews@gmail.com
QuickTake by Bloomberg is a global news network delivering up-to-the-minute analysis on the biggest news, trends and ideas for a new generation of leaders.
Sentinel Indexing in Progress
Metadata and chapters are available. Claim extraction for this episode is pending.
All video content is delivered via YouTube embedded players in accordance with the YouTube Terms of Service. Sentinel provides research tools that promote discovery and accountability across political media.
