White House economic adviser Larry Kudlow on Friday dismissed providing a large-scale stimulus to counter any ill effects the coronavirus might have on the economy but also said that the Trump administration is open to targeted relief.
“I don’t think we should just be throwing money and throwing cash in these short-term rebate models that have never really worked in the past,” he said in an appearance on CNBC, adding that the administration prefers a narrower approach.
Outside economists, such as former top Obama economic adviser Jason Furman, have called on the administration to quickly enact a major fiscal stimulus to prevent worries about the coronavirus outbreak from creating an economy-wide decrease in demand for goods and services.
“We would like to be targeted and timely, not the gigantic macro-economic fix,” he said.
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Kudlow added: “Let’s think about individuals who might lose paychecks because they have to stay at home if they get the virus. Let’s think about small businesses that might get hurt by this. Perhaps we would look at some sectors.”
He also said that the administration should wait for more information before taking action and that the coronavirus “looks relatively contained.”
“80% of the people who get this infection come out just fine,” he said, adding that the “national infection risk is low.”
