Be it resolved: The COVID-19 bailout of financial markets and big business will end up hurting not helping the economic recovery
To address the devastating economic impacts of COVID-19 Western governments have unleashed an unprecedented wave of monetary and fiscal stimulus. The US stimulus package includes trillions of dollars of liquidity for financial markets, the direct purchase of billions in corporate debt by central banks, and billions more in low interest loans and wage supports for big businesses. Supporters of these measures believe they are vital to preventing a severe recession from turning into a Great Depression. Critics charge that we are repeating the mistakes of the Great Financial Crisis by once again bailing out big business on the backs of taxpayers. In this episode of the Munk Debates Podcast, Nomi Prins, a former senior Wall Street insider, and Douglas Holtz-Eakin, former Director of the Congressional Budget Office, debate the essence of these two competing arguments. Sources: CTV News, Global News, MSNBC, MSN, Bloomberg Politics, Quick News, CBS, WNCT-TV9, CNBC, Universal