Banaian; 2 Trillion to be Added to National Debt [PODCAST]
St. Cloud State Economist, Dean School of Public Affairs, King Banaian joined me on WJON today. King says the $600 extra unemployment dollars many have received over the last few months ended July 31. Democrats and Republicans have been debating extending the extra unemployment dollars with the democrats wanting the dollar amount to stay at $600 while republicans prefer $200. King says $400 would be a natural compromise. He is confident the two sides will come up with an agreement. Banaian says these payouts from the federal government is expected to add up to 2 Trillion dollars to the National debt by October.
The retail and hospitality industry have been hit hard by Covid-19. King says many businesses who had been struggling prior to Covid-19 have had to close. King is especially concerned for bars and restaurants with limited inside capacity. He says cold weather will hurt bars and restaurants because outside dinning won't be an option in months.
The stock market continues to show well despite Covid-19. King says the reason for this is less companies identifying on the market and many of those that are doing well are tech related stocks. King says technology based businesses are doing well when many others are not.