How do we prevent another Great Depression?

The chair of the Federal Reserve said the U.S. economy is in a “downturn without modern precedent.” The unemployment rate in May could be north of 20 percent, according to a senior economic adviser to President Trump. Businesses — especially small businesses — are foundering. 

Initially, the federal government came out swinging. It threw $3 trillion into the economy, through a combination of relief bills.  But what if it takes trillions more for the economy to really rebound?

In “The Atlantic,” economics writer Derek Thompson argues it may take $10 trillion or more to save the economy in the end.

Even Americans who are suffering from the health and economic ravages of the pandemic may feel a bit stunned by the dollar amount. Does the government really have to spend $5 trillion in three months? Can the United States afford to dump such unfathomable amounts of money into the economy?

The answers to those questions are yes and absolutely yes.

MPR News host Kerri Miller spoke with Thompson and an economist Wednesday about how the United States might escape a second Great Depression.

Guests:

• Derek Thompson, staff writer at The Atlantic, where he frequently covers the economy

• Matthew Mitchell, director of the Equity Initiative at the Mercatus Center at George Mason University

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