Billionaire businessman Mark Cuban is expressing deep concern about the federal government’s economic response amid the coronavirus outbreak.
On Monday morning, the Dallas Mavericks owner took to Twitter to share his opinion on the Paycheck Protection Program (PPP), and suggested that it missed the mark.
According to Cuban, the federal government should broaden its focus to consider the importance of consumer demand in order to save businesses.
If consumers are unable to make purchases to stimulate the economy, Cuban argues loans will serve very little purpose for businesses.
“It’s time to face the fact that PPP didn’t work. Great plan, difficult execution. No one’s fault,” Cuban tweeted Monday. “The only thing that will save businesses is consumer demand. No amount of loans to businesses will save them or jobs if their customers aren’t buying.”
It’s time to face the fact that PPP didn’t work. Great plan, difficult execution. No one’s fault. The only thing that will save businesses is consumer demand. No amount of loans to businesses will save them or jobs if their customers aren’t buying.
— Mark Cuban (@mcuban) May 17, 2020
He added, “It’s time for trickle-up economics. We need a transitional fed jobs program that trains and hires millions for a federal tracking/tracing/testing program as well as for support for at-risk populations including long term care. We need to dent unemployment with stable jobs.”
It’s time for trickle up economics. We need a transitional fed jobs program that trains and hires millions for a federal tracking/tracing/testing program as well as for support for at risk populations including long term care. We need to dent unemployment with stable jobs
— Mark Cuban (@mcuban) May 17, 2020
Cuban, who also serves on the White House’s Opening Up America Again advisory board, is also urging the federal government to consider another round of stimulus payments.
The “Shark Tank” host is proposing the idea of bi-weekly stimulus payments of $1,000 per household, which would cost the federal government approximately $500 billion.
Despite the hefty price tag, Cuban insists “it will allow for demand for non essential products and services to increase, hopefully keeping most businesses alive.”
He added, “As we learn what the impact of re-opening is on the spread and whether or not employment grows organically.”
Cost about $500b, but it will allow for demand for non essential products and services to increase, hopefully keeping most businesses alive, as we learn what the impact of re-opening is on the spread and whether or not employment grows organically.
— Mark Cuban (@mcuban) May 17, 2020
Cuban’s remarks follow Federal Reserve Chairman Jerome Powell’s support of more coronavirus relief funds to salvage the economy.
While Powell admitted an additional stimulus bill would be costly, he also feels that its a necessary trade-off that would contribute to a stronger recovery, as previously reported on IJR.
“Additional fiscal support could be costly, but worth it if it helps avoid long-term damage and leaves us with a stronger recovery,” Powell said. “This trade-off is one for our elected representatives, who wield powers of taxation and spending.”
