Can Government Spending Save the Economy?

Published: May 18, 2020, 9:56 a.m.

As the American economy plunges toward a recession, economists and policymakers are triaging proposals to stanch the bleeding. All of their ideas will cost money the government doesn\u2019t have. That leaves Democrats and Republicans with two major questions: How much should be borrowed for bailouts \u2014 and what spending is needed to avoid permanent economic damage?\xa0 Guest: Ben Casselman, an economics reporter at The New York Times.\n\nFor more information on today\u2019s episode, visit nytimes.com/thedaily\xa0\n\nBackground reading:\xa0Jerome H. Powell, the Federal Reserve chair, has urged Congress to spend more on economic relief \u2014 even if doing so means increasing the federal deficit. He warned that the United States was experiencing an economic hit \u201cwithout modern precedent.\u201d