The Stimulus Package Is Too Expensive and Poorly Targeted: The Waste Contained in the CARES Act

A cost-effective stimulus to mend the effects of a 24 percent drop in GDP would cost no more than $1.3 trillion over a 6-month period. The bill that Congress just approved is much bigger because it allocates resources to people who are not necessarily affected and rescuing businesses, like Boeing, that are in trouble for pre-existing reasons.

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The Covid-19 Bailout That Big Business Is Lobbying for Could Make America Unrecognizable

Supporting industries is necessary to mitigate the economic impact of the pandemic. But using the coronavirus as an excuse, Boeing and other companies are trying to get taxpayers to foot the bill for their managerial errors. It is not too late to put a limit on corporate subsidies.

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“This Crisis Is Different: the Coronavirus Is a Social Disease Which We Need to Tackle as a Community”

In an extensive interview, former Governor of the Reserve Bank of India and Chicago Booth professor Raghuram Rajan discusses the pandemic’s impact on financial markets and policy reactions. “Monetary policy can be useful in providing some confidence. But targeted measures, both against the spread of the virus and against the consequences of the disease, are really the first element of government action”.  

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The Electoral Effect of the Virus: How the Coronavirus Is Impacting Democratic Primaries

Compared to 2016, turnout was 22 percent higher (on average) for states voting on Super Tuesday, before Covid-19 emergency measures in the United States. This week, the situation changed dramatically: Average growth across states voting on March 17th was just 3 percent. Here’s how States can promote health-conscious participation in elections and what we can learn from the 1918 Spanish Influenza.   

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Populism Weakened the Immune System of Our Democracies. Chile Is an Example

Modern societies have developed immune systems to deal with epidemics: international cooperation, social cohesion, universal health care systems. But today we face the greatest planetary emergency since World War II with these immune systems severely weakened: populist nationalisms disrupt international cooperation and promote every-man-for-himself, and the anti-science wave infects the debate with irrationality.

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Five Conditions for Corporations About to Receive Coronavirus Bailouts

Wall Street and the Federal Reserve are getting ready for massive bailouts, so here are the conditions to put on large corporations who need cash from the government: 1) No bailouts for shareholders; 2) No more buybacks ever and no more dividends for five years; 3) Strict executive compensation limits; 4) No more lobbying and limits on public relations spending; 5) No more mergers and acquisitions for five years. 

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Captured Western Governments Are Failing the Coronavirus Test

In deciding on possible countermeasures, residents of Western democracies often hear only two opposite perspectives: Is the priority to minimize the loss of human lives, or to minimize the impact that the countermeasures might have on the economy? Even the simplest cost-benefit analysis suggests that the US government should be willing to spend up to $65 trillion and lock down the country to avoid extra deaths.

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Sanders Is Leading the Democratic Primaries, but Don’t Bet on an Open Convention

Bernie Sanders is a polarizing front-runner, but there are many reasons to believe the Democratic convention this summer is unlikely to repeat the drama of 58 years ago, when Adlai Stevenson was nominated on the third ballot. The most important is the increasing number of “pledged delegates” chosen on Super Tuesday. 

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