1 00:00:00,000 --> 00:00:02,160 Speaker 1: It's all the people out of job the Democrats are 2 00:00:02,240 --> 00:00:05,760 Speaker 1: using to push What are they pushing for changing the 3 00:00:05,840 --> 00:00:12,080 Speaker 1: emission standards on airplanes? Mister President, What the hell do 4 00:00:12,119 --> 00:00:17,480 Speaker 1: the emission standards on airplanes have to do with thousands 5 00:00:17,480 --> 00:00:19,520 Speaker 1: of people dying and millions of people out of work 6 00:00:19,520 --> 00:00:28,720 Speaker 1: in the Corona coronavirus epidemic. Welcome back to Verdict with 7 00:00:28,760 --> 00:00:31,760 Speaker 1: Ted Cruz. I am Michael Knowles. We have a lot 8 00:00:31,800 --> 00:00:34,559 Speaker 1: to get to. We have to answer that question, what 9 00:00:34,640 --> 00:00:37,440 Speaker 1: the hell do emission standards have to do with coronavirus? 10 00:00:37,440 --> 00:00:42,199 Speaker 1: The Senate has just voted on the coronavirus stimulus package, 11 00:00:42,440 --> 00:00:46,960 Speaker 1: a two trillion dollar package, the largest stimulus in American history. 12 00:00:47,000 --> 00:00:49,040 Speaker 1: It is after midnight on the East Coast and I 13 00:00:49,080 --> 00:00:51,000 Speaker 1: am joined, as ever in the middle of the night 14 00:00:51,360 --> 00:00:55,080 Speaker 1: by one of the Senators who voted on that, Senator Cruz. 15 00:00:55,160 --> 00:00:59,480 Speaker 1: Senator Cruz, what did we just see? Well, Michael, good morning. 16 00:01:00,040 --> 00:01:03,520 Speaker 1: It is twelve twenty seven in the morning, and once again, 17 00:01:03,600 --> 00:01:05,680 Speaker 1: you know, it feels like deja vu all over again. 18 00:01:05,760 --> 00:01:08,280 Speaker 1: It's you know, when we got got got started on 19 00:01:08,280 --> 00:01:12,279 Speaker 1: the Verdict podcast, it was during impeachment, and it seemed 20 00:01:12,280 --> 00:01:15,080 Speaker 1: every night we would be there till midnight one two 21 00:01:15,080 --> 00:01:17,000 Speaker 1: in the morning and then head straight to the studio. 22 00:01:17,360 --> 00:01:19,919 Speaker 1: So I just came from voting on the Senate floor. 23 00:01:20,600 --> 00:01:22,760 Speaker 1: As you noted, the vote was unanimous. It was ninety 24 00:01:22,760 --> 00:01:26,520 Speaker 1: six to nothing. Every single Republican voted yes, every single 25 00:01:26,600 --> 00:01:29,920 Speaker 1: Democrat voted yes. And we just passed out a two 26 00:01:30,040 --> 00:01:35,920 Speaker 1: trillion dollar emergency relief package, which which hopefully will have 27 00:01:36,080 --> 00:01:42,400 Speaker 1: significant effects relieving the economic devastation being caused by this 28 00:01:42,440 --> 00:01:45,399 Speaker 1: Corona crisis. Well, I want to get into exactly what 29 00:01:45,600 --> 00:01:48,480 Speaker 1: is in this package, because obviously there's a lot and 30 00:01:48,560 --> 00:01:51,120 Speaker 1: some of it is controversial. But before we get to 31 00:01:51,240 --> 00:01:53,640 Speaker 1: what is in it, I want to get to why 32 00:01:53,880 --> 00:01:55,360 Speaker 1: we were sitting here in the middle of the night. 33 00:01:55,400 --> 00:01:57,760 Speaker 1: You know, this bill was supposed to be voted on, 34 00:01:57,920 --> 00:02:00,480 Speaker 1: I think over the weekend. Then it was supposed to 35 00:02:00,560 --> 00:02:03,960 Speaker 1: maybe be voted on yesterday, then earlier today, and here 36 00:02:04,000 --> 00:02:06,400 Speaker 1: we are it's after midnight. So I want to know 37 00:02:06,920 --> 00:02:09,799 Speaker 1: why this was so delayed, And I guess more specifically, 38 00:02:09,800 --> 00:02:13,679 Speaker 1: I want to know who delayed the vote. Well, that's 39 00:02:13,680 --> 00:02:16,280 Speaker 1: an easy answer. It's it's two people. It's Nancy Pelosi 40 00:02:16,280 --> 00:02:19,160 Speaker 1: and it's Chuck Schumer. Everybody thought we were going to 41 00:02:19,240 --> 00:02:22,960 Speaker 1: vote on this Sunday night. The bill had been negotiated 42 00:02:23,040 --> 00:02:26,680 Speaker 1: with about a dozen Democrats were part of the negotiating teams. 43 00:02:26,720 --> 00:02:29,399 Speaker 1: They had all been active and engaged, and we thought 44 00:02:29,400 --> 00:02:30,760 Speaker 1: we were going to take it up Sunday night and 45 00:02:30,760 --> 00:02:34,160 Speaker 1: get it past. Nancy Pelosi came in at the last minute, 46 00:02:34,160 --> 00:02:36,840 Speaker 1: and she threw a hand grenade in. She began making 47 00:02:36,919 --> 00:02:41,880 Speaker 1: all of these completely unrelated partisan demands, and we showed 48 00:02:41,919 --> 00:02:45,320 Speaker 1: up Sunday night and every single Democrat voted to block, 49 00:02:46,160 --> 00:02:48,600 Speaker 1: are getting on the bill, are even starting to consider it, 50 00:02:48,600 --> 00:02:50,600 Speaker 1: And so they blocked it on Sunday night. They blocked 51 00:02:50,600 --> 00:02:54,440 Speaker 1: it Monday, all day Tuesday, all day to day until 52 00:02:54,520 --> 00:02:57,799 Speaker 1: just about eleven o'clock last night when we finally got 53 00:02:57,800 --> 00:03:00,520 Speaker 1: it past. So, as you noted in that clip we 54 00:03:00,560 --> 00:03:02,519 Speaker 1: played at the beginning, which by the way, I thought 55 00:03:02,680 --> 00:03:06,120 Speaker 1: was terrific. I was a big fan of you really 56 00:03:06,400 --> 00:03:09,040 Speaker 1: calling calling it like it is here and saying what 57 00:03:09,120 --> 00:03:12,440 Speaker 1: do emission standards? What does the Green New Deal have 58 00:03:12,520 --> 00:03:15,760 Speaker 1: to do with coronavirus? So it looks as though the 59 00:03:15,880 --> 00:03:19,000 Speaker 1: Democrats totally back down. I mean, I don't know, though 60 00:03:19,040 --> 00:03:22,480 Speaker 1: you were there all day. Did the Democrats achieve anything 61 00:03:22,520 --> 00:03:25,079 Speaker 1: by stalling the vote. What's the good stuff in the bill? 62 00:03:25,120 --> 00:03:28,480 Speaker 1: What's the bad stuff in the bill? Well, look, it's complicated. 63 00:03:28,600 --> 00:03:32,560 Speaker 1: Most of the extraneous partisan issues that that that Pelosi 64 00:03:32,639 --> 00:03:35,240 Speaker 1: was fighting for, almost all of them are dropped out 65 00:03:35,240 --> 00:03:38,080 Speaker 1: of the bill. So that's good that what she held 66 00:03:38,120 --> 00:03:42,040 Speaker 1: everything hostage for Sunday and Monday and Tuesday is mostly gone. 67 00:03:42,600 --> 00:03:47,560 Speaker 1: So so so what's past looks two trillion dollars. It's 68 00:03:47,600 --> 00:03:49,160 Speaker 1: a a lot of moneyn of money. I mean, I 69 00:03:49,240 --> 00:03:52,440 Speaker 1: mean that's that's ten percent of our national debt, not 70 00:03:52,520 --> 00:03:55,600 Speaker 1: our deficit, ten percent of our national debt in over 71 00:03:55,640 --> 00:03:58,920 Speaker 1: two centuries. We just spent ten percent of it tonight. 72 00:04:00,280 --> 00:04:04,240 Speaker 1: And it's worth pausing to think that was unanimous. That 73 00:04:04,360 --> 00:04:08,200 Speaker 1: means Bernie Sanders voted for it. I voted for it, 74 00:04:08,240 --> 00:04:11,360 Speaker 1: and everybody in between voted for it. And what I 75 00:04:11,400 --> 00:04:14,960 Speaker 1: would say is the reason is these are not normal times. 76 00:04:15,920 --> 00:04:19,960 Speaker 1: This crisis is extraordinary. The health crisis is extraordinary. People 77 00:04:19,960 --> 00:04:24,080 Speaker 1: are scared. We've got a global pandemic. But not only 78 00:04:24,120 --> 00:04:28,240 Speaker 1: the health crisis, but the response to the health crisis 79 00:04:27,960 --> 00:04:32,440 Speaker 1: has created an economic disaster that is unfolding. There are 80 00:04:32,520 --> 00:04:36,320 Speaker 1: millions of people losing their jobs, and in response to 81 00:04:36,360 --> 00:04:41,040 Speaker 1: that devastation, everyone feels an urgency to provide relief. Now, 82 00:04:41,040 --> 00:04:42,600 Speaker 1: you mentioned at the outset, and this is something a 83 00:04:42,600 --> 00:04:44,760 Speaker 1: lot of people are saying. They're referring it to it 84 00:04:44,800 --> 00:04:48,560 Speaker 1: as stimulus. I don't call this a stimulus bill. This 85 00:04:48,600 --> 00:04:51,560 Speaker 1: is a relief bill. It's quite different. It is designed 86 00:04:51,960 --> 00:04:55,360 Speaker 1: to provide relief to people who are hurting badly and 87 00:04:55,400 --> 00:04:58,719 Speaker 1: are hurting through no fault to their own. They didn't 88 00:04:58,720 --> 00:05:00,880 Speaker 1: do anything to cause this. So what are the different 89 00:05:00,880 --> 00:05:05,720 Speaker 1: pieces what's in this monstrous bill? Yeah, so one big 90 00:05:05,760 --> 00:05:09,880 Speaker 1: piece of it is individual relief. And for every American 91 00:05:09,920 --> 00:05:12,520 Speaker 1: in the country who makes under one hundred thousand dollars 92 00:05:12,560 --> 00:05:15,720 Speaker 1: a year, you're getting a check. You're getting a check 93 00:05:15,760 --> 00:05:19,240 Speaker 1: in the next couple of weeks. Individual adults are getting 94 00:05:19,240 --> 00:05:22,839 Speaker 1: twelve hundred each, a couple's getting twenty four hundred each, 95 00:05:23,760 --> 00:05:25,760 Speaker 1: and if you have kids, you get five hundred each 96 00:05:25,760 --> 00:05:27,920 Speaker 1: for those kids. And those checks are expected to go 97 00:05:27,960 --> 00:05:30,560 Speaker 1: out according to the Treasury Department. They're they're going to 98 00:05:30,600 --> 00:05:32,840 Speaker 1: get them out in two to three weeks, So sometime 99 00:05:33,440 --> 00:05:35,640 Speaker 1: probably early to mid April is when those checks are 100 00:05:35,640 --> 00:05:37,880 Speaker 1: going to arrive. And allot of me if I'm wrong, 101 00:05:38,440 --> 00:05:40,880 Speaker 1: this is unprecedented, right, I mean, we've never seen the 102 00:05:40,880 --> 00:05:45,160 Speaker 1: federal government mailing checks to this large number of Americans 103 00:05:45,200 --> 00:05:50,200 Speaker 1: for direct relief. The only thing comparable to that to 104 00:05:50,320 --> 00:05:54,040 Speaker 1: this was during the two eight crisis. There was a 105 00:05:54,400 --> 00:05:57,200 Speaker 1: smaller set of rebate checks that were sent out under 106 00:05:57,240 --> 00:06:00,160 Speaker 1: the Bush administration, but it wasn't nearly a sign if 107 00:06:00,160 --> 00:06:02,120 Speaker 1: again is this This is much more broad based and 108 00:06:02,360 --> 00:06:06,240 Speaker 1: these are bigger checks. Look, if you're you look at 109 00:06:06,279 --> 00:06:08,520 Speaker 1: restaurants that have been shut down all across the country. 110 00:06:08,560 --> 00:06:11,520 Speaker 1: You look at bars, you look at at at hardware 111 00:06:11,600 --> 00:06:14,360 Speaker 1: stores or nail salons. There are a lot of people 112 00:06:14,400 --> 00:06:17,200 Speaker 1: who are hourly workers who suddenly finding themselves at home 113 00:06:17,400 --> 00:06:18,960 Speaker 1: and are scared. How am I going to make the 114 00:06:19,000 --> 00:06:21,560 Speaker 1: rent check next month? You know? How am I going 115 00:06:21,640 --> 00:06:23,640 Speaker 1: to pay the basic expenses? How we're going to pay 116 00:06:23,640 --> 00:06:27,359 Speaker 1: for food? And so these checks are providing relief on 117 00:06:27,400 --> 00:06:30,840 Speaker 1: a broad based manner. It's not picking winners and losers, 118 00:06:30,839 --> 00:06:34,719 Speaker 1: it's providing it across the board. Most economists degree that's 119 00:06:34,720 --> 00:06:37,840 Speaker 1: not going to be a major stimulus effect, but it 120 00:06:37,920 --> 00:06:40,640 Speaker 1: is going to help people who are worried and being 121 00:06:40,720 --> 00:06:43,240 Speaker 1: hurt by this right now, right, I mean people you know, 122 00:06:43,400 --> 00:06:46,080 Speaker 1: they can't afford to not work for a month or 123 00:06:46,320 --> 00:06:48,200 Speaker 1: however long this is going to go on. So the 124 00:06:48,240 --> 00:06:50,800 Speaker 1: idea is that's going to fill the gap and hopefully 125 00:06:50,880 --> 00:06:52,599 Speaker 1: you can take twelve hundred bucks and put it toward 126 00:06:52,640 --> 00:06:55,880 Speaker 1: your rent or whatever bill is do. What else is 127 00:06:55,880 --> 00:06:58,479 Speaker 1: in the bill? You know, especially in terms of I 128 00:06:58,520 --> 00:07:01,360 Speaker 1: know it was controversial that there's a loan program for 129 00:07:01,440 --> 00:07:04,080 Speaker 1: businesses to stay afloat. The Democrats were vary against that. 130 00:07:04,400 --> 00:07:06,680 Speaker 1: What does that program look like? Well, let me get 131 00:07:06,720 --> 00:07:10,400 Speaker 1: to the Another major part of the bill that I 132 00:07:10,440 --> 00:07:13,280 Speaker 1: think is really important is there's three hundred and seventy 133 00:07:13,320 --> 00:07:17,760 Speaker 1: seven billion dollars for small businesses. And this is an 134 00:07:17,760 --> 00:07:21,040 Speaker 1: emergency loan program that is going to go to small businesses, 135 00:07:21,400 --> 00:07:24,400 Speaker 1: essentially businesses with five hundred employees or less. So the 136 00:07:24,760 --> 00:07:27,840 Speaker 1: hardware stores and barber shops and restaurants that we talked about, 137 00:07:27,840 --> 00:07:31,960 Speaker 1: all these folks that are are shuttered right now and 138 00:07:32,040 --> 00:07:35,840 Speaker 1: are on the verge of bankruptcy, they can now you 139 00:07:35,840 --> 00:07:37,920 Speaker 1: can now go if you're a small business owner, you 140 00:07:37,920 --> 00:07:40,360 Speaker 1: can go and apply for a loan and you can 141 00:07:40,440 --> 00:07:42,840 Speaker 1: get it. It's a small business Administration loan, but you 142 00:07:42,840 --> 00:07:44,720 Speaker 1: can get it from your local bank. It's from all 143 00:07:44,760 --> 00:07:46,960 Speaker 1: of the local banks in the community that you can 144 00:07:47,000 --> 00:07:49,360 Speaker 1: go and apply for it, and it's up to ten 145 00:07:49,400 --> 00:07:53,280 Speaker 1: million dollars. So it's small loans relatively speaking. But they're 146 00:07:53,320 --> 00:07:57,120 Speaker 1: designed in particular to meet costs like payroll, to meet 147 00:07:57,160 --> 00:08:00,480 Speaker 1: costs like rent, the basic costs that you have that 148 00:08:00,520 --> 00:08:02,800 Speaker 1: you don't want to lose your business. And the way 149 00:08:02,840 --> 00:08:05,720 Speaker 1: it's designed, if you spend the money on payroll, if 150 00:08:05,720 --> 00:08:07,560 Speaker 1: you if you say to your employees, we're gonna keep 151 00:08:07,600 --> 00:08:10,640 Speaker 1: paying you, we'na keep your paycheck coming, then those loans 152 00:08:10,680 --> 00:08:13,600 Speaker 1: are forgivable. So for the small business owner, you can 153 00:08:13,680 --> 00:08:16,480 Speaker 1: take the loan and if you actually pay it out 154 00:08:16,520 --> 00:08:21,120 Speaker 1: to your employees, the loan obligation goes away. And so 155 00:08:21,200 --> 00:08:25,440 Speaker 1: that's a direct lifeline not to these small businesses that 156 00:08:26,040 --> 00:08:28,480 Speaker 1: are profoundly hurting, and a lot of them are making 157 00:08:28,520 --> 00:08:31,560 Speaker 1: the decision right now do I stay open or do 158 00:08:31,600 --> 00:08:35,559 Speaker 1: I shutter the door? Well, I'm sorry to interrupted. I 159 00:08:35,600 --> 00:08:39,439 Speaker 1: mean this is a very important point here because you know, 160 00:08:39,559 --> 00:08:41,679 Speaker 1: as we see the unemployment rate ticking up, you had 161 00:08:41,679 --> 00:08:44,760 Speaker 1: claims last week for unemployment that we're comparable if not 162 00:08:44,880 --> 00:08:47,000 Speaker 1: higher than you saw at the peak of the two 163 00:08:47,000 --> 00:08:50,839 Speaker 1: thousand and nine crisis. I mean, you could have massive unemployment, 164 00:08:50,840 --> 00:08:54,040 Speaker 1: you could have businesses falling apart. So this would allow 165 00:08:54,080 --> 00:08:58,400 Speaker 1: the businesses to continue to employ their workers, right, and 166 00:08:58,480 --> 00:09:00,840 Speaker 1: that means people keep a connection into their job. It 167 00:09:00,880 --> 00:09:03,480 Speaker 1: needs they keep their health insurance, which is a big 168 00:09:03,559 --> 00:09:05,600 Speaker 1: challenge for everyone. If you lose your job, you may 169 00:09:05,600 --> 00:09:08,400 Speaker 1: be losing your health insurance. So we'd rather as many 170 00:09:08,400 --> 00:09:11,520 Speaker 1: people as possible to stay employed, to stay in a 171 00:09:11,600 --> 00:09:14,400 Speaker 1: position that when we get past this crisis, hope hopefully 172 00:09:14,400 --> 00:09:17,200 Speaker 1: sooner rather than later, did everyone come back to work. 173 00:09:17,240 --> 00:09:19,000 Speaker 1: That we want to get the economy moving again. And 174 00:09:19,040 --> 00:09:22,760 Speaker 1: so these small business loans again are unprecedented. I mean 175 00:09:22,800 --> 00:09:25,840 Speaker 1: to give you a sense. The Small Business Administration's budget, 176 00:09:25,840 --> 00:09:30,000 Speaker 1: I think last year was twenty three billion dollars. This 177 00:09:30,120 --> 00:09:32,280 Speaker 1: is three hundred and seventy seven billion dollars. So this 178 00:09:32,360 --> 00:09:35,280 Speaker 1: is more than ten times the size of the Small 179 00:09:35,320 --> 00:09:38,920 Speaker 1: Business Administration's entire budget. But all of that money is 180 00:09:38,960 --> 00:09:42,440 Speaker 1: designed to flow out through the community banks to small 181 00:09:42,480 --> 00:09:46,720 Speaker 1: businesses and to be used for payroll predominantly and other 182 00:09:46,800 --> 00:09:49,280 Speaker 1: essential costs like rent and utilities, just to keep the 183 00:09:49,320 --> 00:09:53,520 Speaker 1: businesses open. So I know that this brings up another 184 00:09:53,880 --> 00:09:57,480 Speaker 1: question on employment that was really central to the debate today, 185 00:09:57,480 --> 00:09:59,880 Speaker 1: and you played a central role in this, which is 186 00:10:00,400 --> 00:10:04,360 Speaker 1: some Republican senators, I think Lindsay Graham mentioned it, and 187 00:10:04,440 --> 00:10:07,600 Speaker 1: you spoke out very forcefully against it. Identified in the 188 00:10:07,640 --> 00:10:12,680 Speaker 1: bill a provision that would actually incentivize people not to 189 00:10:12,800 --> 00:10:15,840 Speaker 1: go back to work. What was that provision and where 190 00:10:15,840 --> 00:10:18,280 Speaker 1: does that stand right now? So part of this bill, 191 00:10:18,400 --> 00:10:21,120 Speaker 1: and one of the things in particular the Democrats demanded 192 00:10:21,160 --> 00:10:26,319 Speaker 1: as a price of supporting this bill, was increasing unemployment 193 00:10:26,440 --> 00:10:29,880 Speaker 1: insurance compensation. So when you're when you file for unemployment 194 00:10:29,920 --> 00:10:34,320 Speaker 1: in your states, the federal government is plussing up those 195 00:10:35,720 --> 00:10:39,560 Speaker 1: weekly compensation and plussing it up dramatically. Is basically adding 196 00:10:39,640 --> 00:10:42,520 Speaker 1: six hundred dollars a week to what you can earn 197 00:10:42,559 --> 00:10:45,400 Speaker 1: from unemployment. So so what does that mean? And listen, 198 00:10:46,120 --> 00:10:49,040 Speaker 1: most Republicans, I think that is a good thing. We 199 00:10:49,120 --> 00:10:50,960 Speaker 1: are going to see this week when the job numbers 200 00:10:50,960 --> 00:10:53,960 Speaker 1: comes out. We're going to see millions of Americans who 201 00:10:54,000 --> 00:10:57,199 Speaker 1: have lost their jobs in the last two weeks. I mean, 202 00:10:57,200 --> 00:11:00,240 Speaker 1: it has been I've spoken to at least a dozen 203 00:11:00,360 --> 00:11:03,480 Speaker 1: CEOs in the last week, who've laid off thousands or 204 00:11:03,520 --> 00:11:06,360 Speaker 1: tens of thousands of employees. I mean, it's just one 205 00:11:06,400 --> 00:11:09,280 Speaker 1: after the other after the other. And and and if 206 00:11:09,320 --> 00:11:15,360 Speaker 1: you're suddenly laid off, having unemployment and enough to support 207 00:11:15,400 --> 00:11:17,520 Speaker 1: your family is important. So I think plussing it up 208 00:11:17,520 --> 00:11:21,640 Speaker 1: made sense. Here's the problem. The way it is designed, 209 00:11:22,559 --> 00:11:25,160 Speaker 1: the six hundred dollars is irrespective of what you were 210 00:11:25,240 --> 00:11:28,720 Speaker 1: making before, which means, like I'll give you an example 211 00:11:28,720 --> 00:11:31,839 Speaker 1: in Texas. So right now, in Texas, the maximum someone 212 00:11:31,880 --> 00:11:35,480 Speaker 1: can make on unemployment is five hundred and twenty one 213 00:11:35,520 --> 00:11:38,319 Speaker 1: dollars a week. That's that, that's what the state unemployment 214 00:11:38,360 --> 00:11:42,000 Speaker 1: will and and that's that's based on your income. We're 215 00:11:42,000 --> 00:11:43,920 Speaker 1: now adding six hundred bucks a week to that. So 216 00:11:43,960 --> 00:11:46,040 Speaker 1: instead of five hundred and twenty one dollars a week 217 00:11:46,040 --> 00:11:49,000 Speaker 1: in Texas, it's now eleven hundred and twenty one dollars 218 00:11:49,040 --> 00:11:51,360 Speaker 1: a week. It's a nice raise, that is a very 219 00:11:51,440 --> 00:11:55,120 Speaker 1: nice race. But here's the problem. There's no constraint on 220 00:11:55,559 --> 00:11:57,760 Speaker 1: whether it is more than you were making in your job, 221 00:11:58,080 --> 00:12:00,640 Speaker 1: and and and so I and a number of other 222 00:12:00,720 --> 00:12:03,240 Speaker 1: senators we introduced an amendment today, just a common sense 223 00:12:03,280 --> 00:12:06,360 Speaker 1: amendment that said, look, you should not make more on 224 00:12:06,440 --> 00:12:10,480 Speaker 1: unemployment than you were making working. It's common sense, right, 225 00:12:11,000 --> 00:12:14,720 Speaker 1: and we had so we debated it on the Senate floor. 226 00:12:14,720 --> 00:12:16,959 Speaker 1: It was interesting, actually, an astonishing thing broke out on 227 00:12:17,000 --> 00:12:21,680 Speaker 1: the Senate floor, real debate. Dick Durbin, Democrat from Illinois, 228 00:12:21,800 --> 00:12:24,760 Speaker 1: was arguing back and forth, and our amendment just was 229 00:12:24,800 --> 00:12:27,000 Speaker 1: a simple proposition that you shouldn't be paid more in 230 00:12:27,080 --> 00:12:29,800 Speaker 1: unemployment than you were making in your job. And the 231 00:12:29,840 --> 00:12:33,880 Speaker 1: reason is you don't want to disincentivize work. I'll use 232 00:12:33,880 --> 00:12:37,200 Speaker 1: the Texas example. Eleven hundred and twenty one dollars a week. 233 00:12:38,080 --> 00:12:40,640 Speaker 1: That's a little bit over fifty eight thousand dollars a year. Now, 234 00:12:40,640 --> 00:12:43,720 Speaker 1: that's four months worth, but annualize that's fifty eight grand 235 00:12:43,760 --> 00:12:46,280 Speaker 1: a year. That works out to over twenty eight dollars 236 00:12:46,360 --> 00:12:50,199 Speaker 1: an hour. The problem is, if we're paying people that 237 00:12:50,280 --> 00:12:55,240 Speaker 1: much not to work, it incentivizes people not to work. 238 00:12:55,280 --> 00:12:57,560 Speaker 1: And it was very much ever, go back to your job, well, 239 00:12:57,600 --> 00:12:59,800 Speaker 1: and the back and forth. So Durban did what a 240 00:12:59,840 --> 00:13:02,160 Speaker 1: lot of Democrats did, which is he demagogued. He said, oh, 241 00:13:02,200 --> 00:13:05,960 Speaker 1: these Republicans are saying anyone unemployed is lazy and rotten. 242 00:13:06,360 --> 00:13:08,880 Speaker 1: And I said, Hold on a second. We're saying exactly 243 00:13:08,880 --> 00:13:12,960 Speaker 1: the opposite, which is this policy will hurt workers and 244 00:13:13,000 --> 00:13:16,120 Speaker 1: it'll hurt small businesses. Why let's say you're a waitress 245 00:13:16,679 --> 00:13:19,160 Speaker 1: and you've been been laid off from your job. You're 246 00:13:19,160 --> 00:13:22,400 Speaker 1: getting unemployment, but suddenly you're making twenty five, twenty six, 247 00:13:22,520 --> 00:13:27,160 Speaker 1: twenty eight dollars an hour at home not working, and 248 00:13:27,280 --> 00:13:29,559 Speaker 1: you face the decision do I go back to work 249 00:13:29,640 --> 00:13:35,920 Speaker 1: for ten, twelve, fifteen dollars an hour. We're creating incentives 250 00:13:36,760 --> 00:13:39,320 Speaker 1: where it would be perfectly rational to say I'm not 251 00:13:39,360 --> 00:13:41,200 Speaker 1: going to go back to work because I make a 252 00:13:41,200 --> 00:13:44,680 Speaker 1: lot more money on unemployments. That hurts the workers. It 253 00:13:44,720 --> 00:13:47,080 Speaker 1: also hurts small businesses. Let's say you're trying to reopen 254 00:13:47,120 --> 00:13:50,200 Speaker 1: your restaurant. The shutdown has stopped in your city. You 255 00:13:50,240 --> 00:13:52,520 Speaker 1: want people to come back. You call up your old 256 00:13:52,520 --> 00:13:54,679 Speaker 1: employees and they say, look, I'd love to come back 257 00:13:54,720 --> 00:13:58,839 Speaker 1: to work, but I can't afford the pay cut. Yeah, 258 00:13:58,880 --> 00:14:02,160 Speaker 1: you know, you gotta match my unemployment salary. So that 259 00:14:03,400 --> 00:14:06,160 Speaker 1: I think was an unfortunate mistake, and we ended up 260 00:14:06,160 --> 00:14:08,640 Speaker 1: the amendment loss. It was basically a party line vote. 261 00:14:08,640 --> 00:14:11,480 Speaker 1: I think every Democrat voted against accept Joe Manchin. He 262 00:14:11,520 --> 00:14:16,440 Speaker 1: was the one yes. But I think that was unfortunate. 263 00:14:16,480 --> 00:14:20,080 Speaker 1: But it nonetheless, there will be significant benefits from the 264 00:14:20,080 --> 00:14:24,040 Speaker 1: additional unemployment insurance in this time of crisis. Right, Okay, 265 00:14:24,240 --> 00:14:28,720 Speaker 1: that makes sense. It's too bad unfortunately that that seems 266 00:14:28,720 --> 00:14:30,800 Speaker 1: to have been left in the bill. But I guess 267 00:14:30,840 --> 00:14:32,960 Speaker 1: obviously there's a lot of debate here, and you did 268 00:14:33,000 --> 00:14:37,520 Speaker 1: come to a unanimous vote. However, I have to pick 269 00:14:37,600 --> 00:14:39,080 Speaker 1: up on what you said. You said the vote was 270 00:14:39,360 --> 00:14:43,160 Speaker 1: ninety six to zero. There's more than ninety six senators. 271 00:14:43,160 --> 00:14:46,120 Speaker 1: Some people were missing. Yeah, Now we've got got several 272 00:14:46,160 --> 00:14:50,920 Speaker 1: senators who are out on quarantine. And where that started 273 00:14:51,000 --> 00:14:56,600 Speaker 1: from was a few days ago Rand Paul tested positive 274 00:14:56,640 --> 00:15:01,720 Speaker 1: for the coronavirus and and he had been in in 275 00:15:01,840 --> 00:15:04,240 Speaker 1: DC the whole week. And actually the way we found 276 00:15:04,240 --> 00:15:07,760 Speaker 1: out about it, so we were meeting every day for lunch, 277 00:15:07,760 --> 00:15:10,720 Speaker 1: the Republican senators, and it was interesting. We shifted. We 278 00:15:10,800 --> 00:15:12,760 Speaker 1: normally meet in a room in the capital called the 279 00:15:12,800 --> 00:15:17,920 Speaker 1: Mansfield Room, and and it's um and actually, by the way, 280 00:15:17,920 --> 00:15:20,440 Speaker 1: the Minority meets in the LBJ Room, which is a 281 00:15:20,440 --> 00:15:22,480 Speaker 1: smaller room, but the Mansfield Room is bigger. So it's 282 00:15:22,480 --> 00:15:24,680 Speaker 1: one of the things. It was nice. In twenty fourteen, 283 00:15:24,720 --> 00:15:26,640 Speaker 1: we became the majority, we switched our lunch rooms and 284 00:15:26,680 --> 00:15:30,280 Speaker 1: got to a bigger room. That's a nice perk. But 285 00:15:30,400 --> 00:15:35,080 Speaker 1: when coronavirus hit um, we all wanted a social distance, 286 00:15:35,680 --> 00:15:37,920 Speaker 1: and so the Mansfield room we decided was too small, 287 00:15:37,960 --> 00:15:39,960 Speaker 1: so we were meeting instead in a conference room, and 288 00:15:40,000 --> 00:15:42,440 Speaker 1: we moved actually to a couple of different conference rooms 289 00:15:42,480 --> 00:15:45,400 Speaker 1: that were sort of almost like big auditoriums in one 290 00:15:45,440 --> 00:15:47,440 Speaker 1: of the Senate office buildings, And so we were in 291 00:15:47,480 --> 00:15:50,960 Speaker 1: one of those big, big auditoriums where the acoustics were terrible. 292 00:15:50,960 --> 00:15:52,840 Speaker 1: It's hard for everyone to hear because they're not they're 293 00:15:52,840 --> 00:15:57,200 Speaker 1: just it's not good acoustics. But but Mitch, every every 294 00:15:57,280 --> 00:15:59,840 Speaker 1: day we were meeting for lunch, and we'd have often 295 00:15:59,840 --> 00:16:02,040 Speaker 1: a two to three hour lunch because it would be 296 00:16:02,640 --> 00:16:05,520 Speaker 1: a progress report on the negotiations of the bill. And 297 00:16:05,800 --> 00:16:08,920 Speaker 1: there were different committees that we're working on different portions 298 00:16:08,960 --> 00:16:10,520 Speaker 1: of the bill. So the people would stand up and say, 299 00:16:10,520 --> 00:16:12,320 Speaker 1: all right, here's what's going on with this, and we'd 300 00:16:12,320 --> 00:16:15,360 Speaker 1: ask questions. We debate back and forth, and so a 301 00:16:15,400 --> 00:16:17,640 Speaker 1: few days ago, we're there and Mitch's talking and he 302 00:16:17,800 --> 00:16:21,800 Speaker 1: just kind of matter of facts says, and so Rand, 303 00:16:21,840 --> 00:16:26,760 Speaker 1: Paul just tested positive for coronavirus, and we're all sitting 304 00:16:26,760 --> 00:16:29,240 Speaker 1: there going, what the what like like like, I mean, 305 00:16:29,280 --> 00:16:33,600 Speaker 1: it's and Mitch just very matter of fact mentions it 306 00:16:33,640 --> 00:16:36,000 Speaker 1: and keeps going on and a whole bunch of a second, 307 00:16:36,760 --> 00:16:39,840 Speaker 1: Hold on a second, can can you rewind that tape 308 00:16:39,840 --> 00:16:45,440 Speaker 1: and play it again? And so it was well, and 309 00:16:45,560 --> 00:16:48,760 Speaker 1: Rand had been at the Senate. He had been that 310 00:16:48,880 --> 00:16:52,240 Speaker 1: morning at the Senate. Jim, he'd been swimming in the pool. Wow, 311 00:16:53,360 --> 00:16:55,800 Speaker 1: I gotta say, I don't think I've ever seen my 312 00:16:55,960 --> 00:17:00,280 Speaker 1: colleagues as pissed off as they were, like he had 313 00:17:00,320 --> 00:17:02,920 Speaker 1: just gotten the positive test results, and then they were 314 00:17:02,920 --> 00:17:07,480 Speaker 1: pretty angry that he hadn't self quarantine. Now, Rand said 315 00:17:07,960 --> 00:17:10,440 Speaker 1: he wasn't sick, he had no symptoms, he hadn't come 316 00:17:10,480 --> 00:17:14,160 Speaker 1: in direct contact with the He was at a gathering 317 00:17:14,160 --> 00:17:15,960 Speaker 1: with people who were sick, but he didn't come in 318 00:17:16,000 --> 00:17:18,959 Speaker 1: direct contact with them. I understand his reason. I can 319 00:17:19,000 --> 00:17:21,560 Speaker 1: tell you people were freaked out. And so I remember 320 00:17:21,560 --> 00:17:23,720 Speaker 1: we're sitting there going, Okay, well, what do we do? 321 00:17:23,960 --> 00:17:28,240 Speaker 1: I mean, they're fifty three Republicans. The immediate question all right, 322 00:17:28,240 --> 00:17:31,000 Speaker 1: are we all quarantine? Like, as you know, I spent 323 00:17:31,040 --> 00:17:34,720 Speaker 1: eleven days in self quarantine in Houston, and I'm like, well, 324 00:17:35,359 --> 00:17:37,480 Speaker 1: all of us have been here with Rand. What does 325 00:17:37,520 --> 00:17:45,400 Speaker 1: this mean now? And what ended up happening is within 326 00:17:45,400 --> 00:17:48,199 Speaker 1: an hour or two, two people self quarantined as a result, 327 00:17:48,280 --> 00:17:51,200 Speaker 1: Mike Lee and Met Romney. Yeah. And the reason is 328 00:17:51,240 --> 00:17:53,440 Speaker 1: at lunch they had sat on either side of Rand. 329 00:17:53,640 --> 00:17:56,280 Speaker 1: They had been at lunch with him, they sat next 330 00:17:56,280 --> 00:17:57,919 Speaker 1: to him, They'd been there for a couple hours, and 331 00:17:57,960 --> 00:18:00,200 Speaker 1: so they decided neither of them are feeling sick. Talk 332 00:18:00,280 --> 00:18:04,840 Speaker 1: to both both Mike and Mit this week after they quarantine. 333 00:18:04,880 --> 00:18:08,200 Speaker 1: They both said they were feeling great, but they self 334 00:18:08,280 --> 00:18:10,600 Speaker 1: quarantine because they sat next to Rand and spent a 335 00:18:10,640 --> 00:18:13,639 Speaker 1: couple of hours. You know, I thought about it, but 336 00:18:13,720 --> 00:18:16,200 Speaker 1: as it so happened this past week, I just didn't 337 00:18:16,280 --> 00:18:17,920 Speaker 1: run into Rand. In fact, I didn't even I didn't 338 00:18:17,920 --> 00:18:20,680 Speaker 1: know he's around. I'll often sit next to him at lunch. 339 00:18:20,760 --> 00:18:23,000 Speaker 1: I just didn't happen to this week. So it was 340 00:18:23,040 --> 00:18:25,879 Speaker 1: a good, good week not to sit next to Rand, Paul. 341 00:18:25,960 --> 00:18:28,680 Speaker 1: But it puts you in a tough position because as 342 00:18:28,680 --> 00:18:32,000 Speaker 1: you're all sitting there and leader McConnell tells you all, 343 00:18:32,040 --> 00:18:34,880 Speaker 1: by the way, one of your colleagues has coronavirus. You know, 344 00:18:35,359 --> 00:18:37,719 Speaker 1: it's a pretty small club there in the US Senate. 345 00:18:37,800 --> 00:18:40,840 Speaker 1: You're all voting on this very important legislation. If all 346 00:18:40,840 --> 00:18:44,040 Speaker 1: of the Republicans self quarantined, what happens to the bill? 347 00:18:45,240 --> 00:18:47,480 Speaker 1: That is was a real issue, And I think that's 348 00:18:47,520 --> 00:18:49,200 Speaker 1: one of the reasons why all of us said, let's 349 00:18:49,240 --> 00:18:51,760 Speaker 1: move forward and get this done quickly and get the 350 00:18:51,760 --> 00:18:54,639 Speaker 1: hell out of here. Everyone's flying home tomorrow morning, and 351 00:18:54,960 --> 00:18:57,359 Speaker 1: the Senate is not expected to be in session for 352 00:18:57,400 --> 00:19:00,240 Speaker 1: several weeks. But you know, look, if you look at 353 00:19:00,280 --> 00:19:01,720 Speaker 1: the Senate, there are a lot of people in their 354 00:19:01,720 --> 00:19:03,680 Speaker 1: seventies and eighties. I mean, you want to talk about 355 00:19:03,680 --> 00:19:07,800 Speaker 1: a potentially vulnerable population. We're trying to stay away from 356 00:19:07,800 --> 00:19:10,320 Speaker 1: each other. We're trying to like social distance. People are 357 00:19:10,359 --> 00:19:15,520 Speaker 1: pouring hand sanitizers like crazy. But you know, Rand and 358 00:19:15,520 --> 00:19:18,040 Speaker 1: and and Rand and I traded text. He said he's 359 00:19:18,040 --> 00:19:22,280 Speaker 1: feeling good and feeling healthy. But you remember Rand, what 360 00:19:22,359 --> 00:19:25,840 Speaker 1: was it a year or two? Right? His neighbor tackled him, 361 00:19:26,560 --> 00:19:30,920 Speaker 1: broke six ribs. The ribs punctured his lungs. He got pneumonia, 362 00:19:31,119 --> 00:19:33,200 Speaker 1: and they did surgery and remove part of his lung. 363 00:19:33,520 --> 00:19:37,720 Speaker 1: And and so what's scary about this is Rand, with 364 00:19:37,960 --> 00:19:41,520 Speaker 1: with part of his lung removed, is in a vulnerable 365 00:19:41,560 --> 00:19:46,000 Speaker 1: position where he's more vulnerable if he gets COVID nineteen, 366 00:19:46,000 --> 00:19:48,440 Speaker 1: if he gets sick, he's potentially more vulnerable. And so 367 00:19:48,520 --> 00:19:51,439 Speaker 1: that's he's obviously taking it seriously. But all of us 368 00:19:51,480 --> 00:19:56,280 Speaker 1: are are are worried and praying for Rand. Of course, Yeah, 369 00:19:56,359 --> 00:19:59,159 Speaker 1: that that really does bring it home because some people 370 00:19:59,200 --> 00:20:01,320 Speaker 1: have even kind of and joking about how the median 371 00:20:01,400 --> 00:20:03,960 Speaker 1: age of the US Senate is about one hundred and fifty, 372 00:20:04,040 --> 00:20:06,199 Speaker 1: and so you know that's an at risk population. But 373 00:20:06,280 --> 00:20:10,880 Speaker 1: of course Senator Paul in particular is especially at risk here. 374 00:20:10,960 --> 00:20:13,960 Speaker 1: So I suppose everybody should pray for his speedy recovery. 375 00:20:14,000 --> 00:20:19,520 Speaker 1: And it's one other actual coincidence I suppose with Rand 376 00:20:19,560 --> 00:20:23,160 Speaker 1: Paul being out for this vote, is he's been so 377 00:20:23,560 --> 00:20:28,720 Speaker 1: outspokenly say libertarian, you know, during his political career, and 378 00:20:28,880 --> 00:20:32,240 Speaker 1: conservatives now are struggling with what to think about this 379 00:20:32,320 --> 00:20:35,040 Speaker 1: bill because it's so much money. You know, it's the 380 00:20:35,119 --> 00:20:38,400 Speaker 1: biggest package like this ever in American history. But this 381 00:20:38,480 --> 00:20:43,160 Speaker 1: is a totally novel circumstance. How should conservatives be looking 382 00:20:43,200 --> 00:20:47,440 Speaker 1: at this? Look, I've struggled with it. Every conservative is 383 00:20:47,440 --> 00:20:50,080 Speaker 1: struggled with it. Two trillion dollars is a ton of money. 384 00:20:50,760 --> 00:20:54,240 Speaker 1: I think the magnitude of the challenge we're facing justifies it. 385 00:20:55,400 --> 00:20:57,600 Speaker 1: And I also think it's very different. I mean, some 386 00:20:57,640 --> 00:21:00,040 Speaker 1: people are trying to draw the analogy to tarp to 387 00:21:00,040 --> 00:21:03,200 Speaker 1: to what happened with the two thousand and eight financial crisis. 388 00:21:03,240 --> 00:21:06,840 Speaker 1: I think they're dramatically different. And the biggest reason their 389 00:21:06,880 --> 00:21:11,000 Speaker 1: difference is the financial meltdown was caused in very significant 390 00:21:11,040 --> 00:21:15,160 Speaker 1: part by misconduct by the financial services firms who were 391 00:21:15,520 --> 00:21:19,000 Speaker 1: taking undue risks, who got all the upside if they 392 00:21:19,000 --> 00:21:21,560 Speaker 1: made money, they got rich and and got to enjoy 393 00:21:21,600 --> 00:21:24,159 Speaker 1: the blessings. But then when it all cratered, the government 394 00:21:24,200 --> 00:21:25,720 Speaker 1: had to step in and help them, and so it 395 00:21:26,040 --> 00:21:30,720 Speaker 1: it felt very much like a rigged gain. This is 396 00:21:30,720 --> 00:21:33,560 Speaker 1: a very different circumstance because the people that are getting 397 00:21:33,560 --> 00:21:37,240 Speaker 1: relief here, they didn't do anything to cause the coronavirus. 398 00:21:37,280 --> 00:21:41,680 Speaker 1: It wasn't their conduct. You know, the individual waiter who's 399 00:21:41,680 --> 00:21:45,080 Speaker 1: been laid off, it's not his fault that this started 400 00:21:45,080 --> 00:21:47,520 Speaker 1: in Wuhan and spread across the world. It's it's not 401 00:21:47,560 --> 00:21:50,399 Speaker 1: the fault of the guy who owns the local movie theater, 402 00:21:51,840 --> 00:21:55,360 Speaker 1: and and so I think that's different. I think it's 403 00:21:55,440 --> 00:21:58,840 Speaker 1: also important that if you look at how this is structured, 404 00:22:00,480 --> 00:22:03,840 Speaker 1: You've got the individual grants, which which are very important relief. 405 00:22:03,880 --> 00:22:06,400 Speaker 1: You've got the small business piece, which is very important 406 00:22:06,640 --> 00:22:08,720 Speaker 1: if you look at other elements of it. So there 407 00:22:08,960 --> 00:22:12,440 Speaker 1: is one hundred billion dollars in this directed to hospitals 408 00:22:12,440 --> 00:22:16,879 Speaker 1: and healthcare providers. Now look in the coronavirus circumstance. Hospitals 409 00:22:16,920 --> 00:22:19,760 Speaker 1: are panicking. They need to spend their capacity. One hundred 410 00:22:19,800 --> 00:22:22,800 Speaker 1: billion dollars for hospitals. You know, God forbid, you have 411 00:22:22,880 --> 00:22:26,960 Speaker 1: circumstances where we need to ramp up quickly. That is 412 00:22:27,400 --> 00:22:31,520 Speaker 1: almost the very definition of emergency relief for this crisis. 413 00:22:31,520 --> 00:22:36,880 Speaker 1: You've got sixteen billion dollars for protective gear, for ventilators 414 00:22:36,880 --> 00:22:41,760 Speaker 1: and medical supplies. That again is crisis appropriation. You've got 415 00:22:41,800 --> 00:22:44,240 Speaker 1: one hundred and fifty billion dollars for state and local 416 00:22:44,280 --> 00:22:47,720 Speaker 1: governments to meet the coronavirus and it's limited so that 417 00:22:47,720 --> 00:22:51,960 Speaker 1: it goes to coronavirus spending on the state and local level. 418 00:22:52,359 --> 00:22:54,760 Speaker 1: So you're saying that the states and the cities they 419 00:22:54,760 --> 00:22:57,080 Speaker 1: can't just spend it on whatever pet project they want. 420 00:22:57,280 --> 00:23:00,399 Speaker 1: There actually will be some checks on how they can 421 00:23:00,440 --> 00:23:03,520 Speaker 1: use the federal money. I hope, so maybe not. But look, 422 00:23:03,720 --> 00:23:05,879 Speaker 1: let me throw in the caveat this bill is massive. 423 00:23:06,560 --> 00:23:11,240 Speaker 1: It was drafted really quickly. We're going to find all 424 00:23:11,240 --> 00:23:13,960 Speaker 1: sorts of ugly things there as it rolls forward. So 425 00:23:14,040 --> 00:23:17,120 Speaker 1: when it comes to the constraints on the states, at 426 00:23:17,200 --> 00:23:19,720 Speaker 1: least as it was relayed to us, as we understood 427 00:23:19,760 --> 00:23:22,520 Speaker 1: it, it it was intended to be just coronavirus spending. Can 428 00:23:22,560 --> 00:23:25,919 Speaker 1: I promise that there won't be states frittering the money away? No, 429 00:23:26,160 --> 00:23:29,880 Speaker 1: but they are facing a massive and unprecedented health crisis. 430 00:23:29,880 --> 00:23:33,320 Speaker 1: So the intention was give them the funds. And that 431 00:23:33,400 --> 00:23:36,960 Speaker 1: was one of the big Democratic holdouts and demands also 432 00:23:37,040 --> 00:23:40,920 Speaker 1: as they wanted money for the state and local governments. 433 00:23:40,960 --> 00:23:43,199 Speaker 1: And that's one of the big things that was added 434 00:23:43,359 --> 00:23:46,800 Speaker 1: that was expanded in the last couple of weeks. The 435 00:23:46,920 --> 00:23:51,680 Speaker 1: part that is deemed the most controversial is there's five 436 00:23:51,800 --> 00:23:55,920 Speaker 1: hundred billion dollars for what's called the Stabilization Fund. Now 437 00:23:55,960 --> 00:23:58,920 Speaker 1: that's what the Democrats have been characterizing as the big 438 00:23:58,960 --> 00:24:03,720 Speaker 1: corporation bailout. Right, listen of all the parts of the bill, 439 00:24:03,840 --> 00:24:07,960 Speaker 1: that's the part I have the most concerns about. But 440 00:24:08,119 --> 00:24:12,840 Speaker 1: I do think they're differences even in that part from 441 00:24:13,119 --> 00:24:17,399 Speaker 1: from a bailout. Almost all of that is structured as loans. 442 00:24:17,720 --> 00:24:22,000 Speaker 1: So what are the components of it? The components of it? 443 00:24:23,280 --> 00:24:26,879 Speaker 1: You've got four hundred and fifty billion dollars that basically 444 00:24:26,960 --> 00:24:30,720 Speaker 1: goes to the FED to make loans across the economy, 445 00:24:31,359 --> 00:24:34,480 Speaker 1: and it's designed for the FED to leverage it up 446 00:24:35,400 --> 00:24:37,959 Speaker 1: so that four hundred and fifty billion is expected to 447 00:24:38,000 --> 00:24:42,840 Speaker 1: result in about four trillion dollars in additional capital. So 448 00:24:43,200 --> 00:24:46,920 Speaker 1: I'm sorry, pardon my economic ignorance. How does that work? 449 00:24:47,640 --> 00:24:51,720 Speaker 1: So the FED will make loans, will make loans that 450 00:24:51,760 --> 00:24:54,680 Speaker 1: will go out to businesses, to companies all through the country, 451 00:24:55,119 --> 00:24:57,960 Speaker 1: and you know, look in thinking about how to respond 452 00:24:58,160 --> 00:25:00,760 Speaker 1: to this crisis, I try to talk to a lot 453 00:25:00,760 --> 00:25:03,680 Speaker 1: of experts, to conservatives who I know in respect and trust. 454 00:25:03,680 --> 00:25:06,200 Speaker 1: So one person I called his Art Laugher. Art Laugher 455 00:25:06,240 --> 00:25:09,520 Speaker 1: is a good friend, was Reagan's chief economist, helped design 456 00:25:09,600 --> 00:25:12,080 Speaker 1: the Reagan tax cut, the Laugher curve. You you may 457 00:25:12,080 --> 00:25:14,879 Speaker 1: recall he drew on a napkin that laid out the 458 00:25:14,920 --> 00:25:18,119 Speaker 1: principle that if you raise taxes too high, tax revenue 459 00:25:18,119 --> 00:25:20,640 Speaker 1: will go down. And in that circumstance, if you lower 460 00:25:20,640 --> 00:25:22,600 Speaker 1: the tax rate, you can actually the federal grammer collects 461 00:25:22,680 --> 00:25:26,399 Speaker 1: more taxes because of incentives. Art is a strong conservative, 462 00:25:26,400 --> 00:25:28,879 Speaker 1: A great friend. I called Art said, all right, what 463 00:25:29,080 --> 00:25:32,160 Speaker 1: should we be doing this? This is an economic catastrophe. 464 00:25:32,240 --> 00:25:36,000 Speaker 1: What what should a conservative be doing it? Art focused 465 00:25:36,040 --> 00:25:39,680 Speaker 1: on two things. He said, Number one, we should do 466 00:25:39,720 --> 00:25:42,000 Speaker 1: a payroll tax holiday from now to the end of 467 00:25:42,000 --> 00:25:44,720 Speaker 1: the year. Payroll tax is about seven and a half 468 00:25:44,760 --> 00:25:46,720 Speaker 1: percent paid by the employee, about seven and a half 469 00:25:46,720 --> 00:25:49,960 Speaker 1: percent paid by the employer. We should just say nobody 470 00:25:50,000 --> 00:25:51,680 Speaker 1: has to pay it from now to the end of 471 00:25:51,720 --> 00:25:55,400 Speaker 1: the year. That would create enormous incentives for work. Look 472 00:25:55,400 --> 00:25:57,119 Speaker 1: at Harkins, back to the fight we had over the 473 00:25:57,160 --> 00:26:00,680 Speaker 1: unemployment compensation, the disincentive for work. I'm very focused on 474 00:26:01,160 --> 00:26:05,119 Speaker 1: incentives for work. Right. That makes sense. By the way, 475 00:26:05,680 --> 00:26:07,840 Speaker 1: half of that proposal is in this bill. One of 476 00:26:07,880 --> 00:26:10,400 Speaker 1: the things that is included in this bill is from 477 00:26:10,400 --> 00:26:13,359 Speaker 1: now to the end of the year, employers don't have 478 00:26:13,440 --> 00:26:15,919 Speaker 1: to pay their half of the payroll taxes. They have 479 00:26:16,000 --> 00:26:18,640 Speaker 1: to repay it in twenty twenty one and twenty twenty two. 480 00:26:18,640 --> 00:26:22,040 Speaker 1: But it defers those tax payments, which means for an 481 00:26:22,119 --> 00:26:26,840 Speaker 1: employer lowers the cost of employment. It makes jobs less expensive. 482 00:26:26,920 --> 00:26:31,199 Speaker 1: That is a good supply side step in terms of 483 00:26:31,280 --> 00:26:34,520 Speaker 1: tax really. But the other thing Art said, and this 484 00:26:34,600 --> 00:26:38,080 Speaker 1: was important, He said, Listen, the most dangerous thing in 485 00:26:38,119 --> 00:26:41,240 Speaker 1: an liquidity crisis is you don't want it to become 486 00:26:41,240 --> 00:26:44,320 Speaker 1: a solvency crisis. Now what does that mean. That means 487 00:26:45,760 --> 00:26:48,160 Speaker 1: your customers have dried up because the government is making 488 00:26:48,200 --> 00:26:51,959 Speaker 1: people stay home, and suddenly your revenue is plummeting and 489 00:26:52,160 --> 00:26:54,879 Speaker 1: you can't meet your basic bills. You can't meet your payroll, 490 00:26:54,920 --> 00:26:56,680 Speaker 1: you can't meet your mortgage, you can't meet your rent. 491 00:26:57,320 --> 00:26:59,800 Speaker 1: And so when you face a solvency crisis, you've got 492 00:26:59,840 --> 00:27:03,119 Speaker 1: a suddenly sell stuff on the cheap. We don't want 493 00:27:03,119 --> 00:27:05,919 Speaker 1: to see the airlines suddenly have to auction off all 494 00:27:05,960 --> 00:27:08,639 Speaker 1: their planes for ten cents on the dollar. That would 495 00:27:08,640 --> 00:27:12,720 Speaker 1: take a temporary crisis and turn it into catastrophe and 496 00:27:12,760 --> 00:27:15,520 Speaker 1: the and so what Art said is you want to 497 00:27:15,600 --> 00:27:19,320 Speaker 1: have liquidity in the system. You want to have people 498 00:27:19,440 --> 00:27:21,800 Speaker 1: being able to get a line of credit. Companies able 499 00:27:21,800 --> 00:27:25,120 Speaker 1: to get a line of credit, so they survived the catastrophe. 500 00:27:25,160 --> 00:27:29,320 Speaker 1: And so that was his principal recommendation, which has been 501 00:27:29,600 --> 00:27:32,080 Speaker 1: echoed by a lot of conservative economists I've talked to 502 00:27:32,960 --> 00:27:35,000 Speaker 1: that four hundred and fifty billion is designed to do 503 00:27:35,080 --> 00:27:38,600 Speaker 1: exactly that, to make want to take this acute problem 504 00:27:38,760 --> 00:27:43,240 Speaker 1: and have it lead to very long term economic catastrophe 505 00:27:43,280 --> 00:27:45,479 Speaker 1: because we were too cheap to do what we had 506 00:27:45,520 --> 00:27:50,040 Speaker 1: to do in the moment. That's exactly right. Now. All 507 00:27:50,040 --> 00:27:52,560 Speaker 1: of that is our loans. Those are not grants. So 508 00:27:52,600 --> 00:27:55,640 Speaker 1: nobody's getting a special payment that they get to keep. 509 00:27:55,680 --> 00:27:57,840 Speaker 1: No one's getting bailed out in that sense. All it 510 00:27:57,880 --> 00:28:00,880 Speaker 1: means is they're able to go and get a loan 511 00:28:01,480 --> 00:28:03,320 Speaker 1: and they're able to get alan. Think about it, if you, 512 00:28:03,400 --> 00:28:07,040 Speaker 1: let's say you run a hotel. Yeah, I talked to 513 00:28:07,800 --> 00:28:11,200 Speaker 1: several hotel owners who described, like one said their occupancy 514 00:28:11,280 --> 00:28:15,200 Speaker 1: rate was now six percent. Look six percent, you couldn't 515 00:28:15,240 --> 00:28:18,000 Speaker 1: go get a loan. I mean, a hotel is not 516 00:28:18,119 --> 00:28:20,679 Speaker 1: a going concern it with six percent occupancy rate. Now 517 00:28:20,680 --> 00:28:22,800 Speaker 1: it won't always be. It didn't used to be. And 518 00:28:22,840 --> 00:28:26,600 Speaker 1: when the crisis is over, presumably it won't. But who 519 00:28:26,640 --> 00:28:29,720 Speaker 1: would want to see every hotel auctioned off at a 520 00:28:29,760 --> 00:28:34,159 Speaker 1: foreclosure sale? And all that would mean is whoever happened 521 00:28:34,160 --> 00:28:38,280 Speaker 1: to have capital would suddenly have a windfall be able 522 00:28:38,320 --> 00:28:40,880 Speaker 1: to acquire you know, let's go buy the Waldorf Astoria 523 00:28:41,040 --> 00:28:44,840 Speaker 1: for ten cents on the dollar. That actually doesn't help 524 00:28:45,000 --> 00:28:48,920 Speaker 1: the economy or anything to force every business owner to 525 00:28:48,920 --> 00:28:54,400 Speaker 1: sell their assets. And so the liquidity is basically giving 526 00:28:54,480 --> 00:28:56,520 Speaker 1: someone the capacity to get out of it. Now, look, 527 00:28:57,000 --> 00:29:00,360 Speaker 1: there may be some failures, there's some taxpayer exposures. Quidity 528 00:29:00,520 --> 00:29:04,280 Speaker 1: is not cost free, yeah, but but it is not. 529 00:29:04,880 --> 00:29:09,000 Speaker 1: It's designed to be broad based enough that hopefully it 530 00:29:09,080 --> 00:29:12,600 Speaker 1: won't be the government picking winners and losers. Now, well, 531 00:29:12,680 --> 00:29:15,520 Speaker 1: it does sound very different in that way from the 532 00:29:15,680 --> 00:29:19,440 Speaker 1: two thousand and nine federal spending that we saw. Yes, 533 00:29:19,640 --> 00:29:22,960 Speaker 1: now there are two exceptions to that, one of which 534 00:29:24,240 --> 00:29:27,320 Speaker 1: is more problematic than the others. So there's seventeen billion 535 00:29:28,080 --> 00:29:33,320 Speaker 1: that is carved out they say for nationally security important 536 00:29:33,400 --> 00:29:38,840 Speaker 1: companies that basically everyone knows means Boeing and maybe ge 537 00:29:39,480 --> 00:29:41,760 Speaker 1: and and they were pretty candid about we're just writing 538 00:29:41,800 --> 00:29:43,880 Speaker 1: it to help and listen, Boeing has all sorts of 539 00:29:43,920 --> 00:29:46,840 Speaker 1: problems that had nothing to do with the coronavirus, and 540 00:29:46,840 --> 00:29:51,680 Speaker 1: and and and I fought hard against that, the Boeing 541 00:29:51,680 --> 00:29:54,320 Speaker 1: and G money. I argued against it. I stood up 542 00:29:54,320 --> 00:29:58,640 Speaker 1: in conference and I mean blasted my colleagues, and you 543 00:29:58,720 --> 00:30:00,720 Speaker 1: know what, we couldn't get get it out of the bill. 544 00:30:01,440 --> 00:30:03,480 Speaker 1: And the sad thing is the Republicans wanted it in, 545 00:30:03,520 --> 00:30:09,920 Speaker 1: and so did the Democrats. The second industry specific component 546 00:30:10,040 --> 00:30:14,400 Speaker 1: is airlines and airlines. It's interesting, you know, the Democrats 547 00:30:14,440 --> 00:30:17,600 Speaker 1: talking point, which all of them are saying, is this 548 00:30:17,680 --> 00:30:20,880 Speaker 1: is all corporate welfare for Republicans. They want the big corporations. 549 00:30:21,400 --> 00:30:28,360 Speaker 1: Here's the irony, Mike. The corporate welfare increased because of 550 00:30:28,400 --> 00:30:32,600 Speaker 1: the Democrats demands. So the Democrats are entirely posturing. So 551 00:30:32,720 --> 00:30:35,280 Speaker 1: let's take, for example, the airline portion of it. So 552 00:30:35,320 --> 00:30:37,680 Speaker 1: there was fifty eight billion, and the Republican bill that 553 00:30:37,720 --> 00:30:39,680 Speaker 1: we had, actually the bipartisan bill that we had that 554 00:30:39,720 --> 00:30:42,520 Speaker 1: we're going to vote on on Sunday, there was fifty 555 00:30:42,560 --> 00:30:44,760 Speaker 1: eight billion for airlines, but it was all in loans. 556 00:30:44,800 --> 00:30:46,560 Speaker 1: It was one hundred percent loans that they would have 557 00:30:46,600 --> 00:30:50,000 Speaker 1: to pay back. The Democrats in the last three days 558 00:30:50,000 --> 00:30:52,760 Speaker 1: of their negotiations, they insisted that fifty percent of it 559 00:30:52,800 --> 00:30:56,400 Speaker 1: be grants, that it be direct grants rather than loans. 560 00:30:56,720 --> 00:30:58,800 Speaker 1: So the next time you see if you listen to 561 00:30:58,800 --> 00:31:01,640 Speaker 1: any of the Democrats rattling on about they're the ones 562 00:31:01,680 --> 00:31:04,480 Speaker 1: that fought for the grants instead of the loans. You know, 563 00:31:04,840 --> 00:31:08,200 Speaker 1: you don't see that reported and much of the mainstream press, 564 00:31:08,400 --> 00:31:10,640 Speaker 1: actually you don't see much of any of this that 565 00:31:10,680 --> 00:31:13,520 Speaker 1: we're talking about right now reported in the mainstream press. Senator, 566 00:31:13,560 --> 00:31:17,800 Speaker 1: we're already over time, but just before we go, do 567 00:31:17,840 --> 00:31:21,320 Speaker 1: you have a sort of thirty second takeaway beyond everything 568 00:31:21,320 --> 00:31:23,840 Speaker 1: we've talked about for the American people while they're looking 569 00:31:23,840 --> 00:31:27,719 Speaker 1: at this crisis and while they're looking at this relief package. Listen, 570 00:31:27,760 --> 00:31:30,000 Speaker 1: this crisis is extraordinary. But we're going to make it 571 00:31:30,040 --> 00:31:32,440 Speaker 1: through this. We're gonna make it through the public health side. 572 00:31:32,480 --> 00:31:34,920 Speaker 1: And people are scared. I get it. People are frustrated 573 00:31:34,960 --> 00:31:37,600 Speaker 1: about being at home. We will make it through this, 574 00:31:37,640 --> 00:31:40,080 Speaker 1: but we'll also make it through the economic challenges. I mean, 575 00:31:40,120 --> 00:31:42,880 Speaker 1: people are worried. Now. You and I have never lived 576 00:31:42,880 --> 00:31:45,800 Speaker 1: through a great depression. We've never seen twenty percent, thirty 577 00:31:45,800 --> 00:31:48,160 Speaker 1: percent unemployment. I don't know if we will see that 578 00:31:48,280 --> 00:31:50,720 Speaker 1: or not. I certainly don't want to. I hope that 579 00:31:50,800 --> 00:31:55,400 Speaker 1: this emergency relief package helps. But the way we stop 580 00:31:55,440 --> 00:31:59,000 Speaker 1: the economic devastation as we solve the pandemic is that 581 00:31:59,040 --> 00:32:04,080 Speaker 1: we contain it. Is that we develop effective vaccines and treatments. 582 00:32:04,160 --> 00:32:06,760 Speaker 1: We need to do that, and my focus and priority 583 00:32:06,840 --> 00:32:09,920 Speaker 1: is stopping this pandemic but also ensuring that we have 584 00:32:09,920 --> 00:32:13,000 Speaker 1: an economy that can keep going going forward. We don't 585 00:32:13,000 --> 00:32:16,040 Speaker 1: want to see every small business in America destroyed in 586 00:32:16,080 --> 00:32:18,120 Speaker 1: the process of keeping us safe. So we got to 587 00:32:18,160 --> 00:32:22,080 Speaker 1: do both and that they're going to be challenging days ahead. 588 00:32:23,320 --> 00:32:27,040 Speaker 1: But but it's worth remembering. Listen, America is a great country, 589 00:32:27,040 --> 00:32:30,520 Speaker 1: and we're great because of the character the people. We 590 00:32:30,600 --> 00:32:35,640 Speaker 1: have overcome challenges before. We've overcome world wars, We've overcome 591 00:32:35,720 --> 00:32:38,680 Speaker 1: nine to eleven, and we will overcome this and that 592 00:32:39,600 --> 00:32:43,400 Speaker 1: I'm inspired every day by the heroism of the American people, 593 00:32:43,440 --> 00:32:46,080 Speaker 1: and that's what's going to take us beyond this challenge 594 00:32:46,080 --> 00:32:49,000 Speaker 1: as well. I agree, And part of the way that 595 00:32:49,040 --> 00:32:51,760 Speaker 1: we will recover is by staying healthy. And Senator, part 596 00:32:51,760 --> 00:32:54,120 Speaker 1: of the way you stay healthy is by getting enough sleep. 597 00:32:54,360 --> 00:32:56,200 Speaker 1: So we've got to let you get out of here 598 00:32:56,400 --> 00:32:57,920 Speaker 1: and go back home and get at least a few 599 00:32:57,920 --> 00:33:00,560 Speaker 1: hours of sleep. There's so much more cover. I guess 600 00:33:00,600 --> 00:33:02,520 Speaker 1: we'll just have to get to it next time. I'm 601 00:33:02,560 --> 00:33:04,959 Speaker 1: Michael Knowles. This is verdict with Ted Cruz.