now again this guy jason furman he is a bit concerned he looks at the numbers and says there is the one big problem with this if you look at it from a top down perspective advocates of stimulus often point to multipliers like $1.00 or higher in this case the hope has to be that the multiplier is much lower otherwise this would bring us we passed what the economy can produce this year so that's that's him saying in academic speak that we don't want really high inflation because the multiplier what especially he's talking about is when the government prints up the $700000000000.00 like you're saying that was treasury money that was the u.s. government printing out money to give to the banker $700000000000.00 well obviously there wasn't much of a multiplier right that it turned into about $200000000000.00 worth of g.d.p. we get it and they pocketed the other 500000000000 for themselves so when you give it to ordinary people who are living you know paycheck to paycheck then the theory is that you know they go out and spend it they you know they make their insurance payments and their car pa

jason furman is scheduled to join us here in a bit.ater today, the gentlelady from new jersey, christine todd whitman, in the 1:00 hour. stay with us. this day of inauguration, this is bloomberg. ♪ - [announcer] imagine having fuller, thicker, more voluminous hair instantly. all it takes is just one session at hairclub. introducing xtrands. xtrands adds hundreds or even thousands of hair strands to your existing hair at the root. they're personalized to match your own natural hair color and texture, so they'll blend right in for a natural, effortless look. call in the next five minutes and when you buy 500 strands, you get 500 strands free. call right now. (upbeat music) leigh-ann: this -- emma: this is bloomberg surveillance. i am emma chandra. joe biden will cancel the keystone xl pipeline today hours after becoming president. they will kill a cross-border project that had won a four-year reprieve under president trump. the biden administration says the pipeline did not serve the national interest. netflix ended the biggest year in c

here's a stream of tweets from jason furman he was a member of the council of economic advisors to president obama and some very left wing progressive sort of economists and here are some of his thoughts on this he's excited about the $1.00 trillion dollars pet plan but he says it is very large together with the december legislation it would be around $2.00 trillion dollars which is that about $300000000000.00 per month for the 9 months that it is in effect for context in november u.s. g.d.p. was about $80000000000.00 below pre-crisis trend and compensation was about $20000000000.00 below pre-crisis trend so total pre-crisis trend decline was one $100000000000.00 a month now we're going to print a $300000000000.00 and want to make up for it right remember 2008 the global financial crisis hank paulson went to congress and demanded 700 $1000000000.00 to bail out the banks yes ok so at the time we said that a barack obama is a ministration could have bailed out the debtors yet is to say the mortgage holders of the credit card owners i would be eventually less cost to america than bailing out th

have to fend for themselves so we don't know what the spillover effects are but even this guy jason furman who was an advisor to you know obama's disastrous economic decision and so they keep saying this could be a disaster but like let's just throw money at the situation right remember as they warned 4 years ago diggle. obligation did dollars they should yeah now 4 years later we see what that means are going to take a break and when we come back general selim today. ok. then a 2nd wave is coming now the virus is mutating 2 blocks away from the apartment and i would get confused. meanwhile patients who recovered from covert started to report some unusual aftereffects the symptoms were different but. my hearing. one of those things like research is all over the world are trying to determine the many pains and other problems and then turn it all into numbers. 1113 there this is throughout the day. various sources reports that didn't just leave for 35 percent of recovered patients. there have been many complaints of peril vision loss joint pain and fatigue in the us these patients are referr

[phone ringing] there's a new paper that just came out from larry summers and jason furman that argue 30 years of low interest rates should make us rethink concerns that the federal debt. they argue fiscal policy should focus on economic growth and not debt reduction. are they right? >> , talking about debt reduction. i'm talking about avoiding having permanent growth in deficits and debt. it's a while before we'll be having a conversation about deficit and debt reduction. you have to distinguish the conversation about paying for new things that we have to invest in and when do we turn to policies the musical deficit reduction that have been called by others fiscal austerity? i don't think the time to have that conversation is now or anytime soon. we learned in 2009, ten and 11 the danger putting the brakes on too fast. you can slow a recovery down and you can actually raise the risk of a double-dip recession. i think we have to be careful about moving quickly into what used to be a fairly comfortable space for many. i think, on the other hand, to think you could spend one, two, or $3

there is a new paper that just came out from jason furman that argued 30 years of interest rates shoulde us concerned. they argue policy should focus on economic growth and they are right. i'm not talking about their reflections. i'm talking about avoiding having permanent growth in deficits and debt. i think it's a while before we were having a conversation about deficit and debt reduction. yet it's distinguished a conversation about paying for new things that we have to invest in and when to return to policies that are called for deficit reductions and fiscal austerity. i don't think it's the time to have that conversation now or anytime soon.ed we learned in 2009, 2010 and 2011 the dangers putting on the brakes too fast. you can slow the recovery down and you can actually raise the risk of a double-dipua recessio. i think we have to be careful about moving quickly into what used to be a fairly comfortable space for many. i think on the other hand you could spend one, two or $3 trillionor over 10 years aboe where we are now is not related to an emergency and a different kind of questi

my calling jason furman has played a lead role in the u.k.'s digital competition.iddle point between where the eu is and where the u.s. currently is. looking back and looking at what the judiciary committee published in october, i think you will see a new regulatory initiative. the question is could france and others put digital taxes on the u.s.? alix: adam, it was really good to get all of your perspective. we really appreciate your time. thank you very much. this is bloomberg. ♪ alix: the nasdaq off by about 7/10 of 1%. the question becomes what about options? did this lead to the selloff? do we see some options come into help support the market? abigail doolittle is helping us break it down. abigail: we recently had them pushing to record highs. getting into stocks. it could have what some are calling a negative feedback. something we saw back in august with the nasdaq 100. you had the nasdaq 100 surge of 20%. it turns out a lot of that has to do with options. as a result, the dealers had to buy the underlying securities. the dam apart where you need to hedge a

jason furman saying that is not such a big problem as long as interest rates stay low. nevertheless, might be constraining true fiscal dominant monetary policy down the road. the independence of the central bank that, at that time, when it has to step on the brakes a little bit, that it can actually raise interest rates. how would you stress the importance of the independence of the central bank, also in connections, whether there are some things institutionally in the u.s., some modifications are not? in times of crisis, one says the treasury and central bank should collaborate. bond buying programs, which we talked about, taken on by the u.s. treasury rather than the fed. any lessons we should learn from the action in the treasury for the central banks, not only for the u.s., but for other countries? chairman powell: to start with public debt and monetary policy, i would say, first of all, the u.s. is not on a sustainable path that the federal government level in the simple sense that the debt is growing significantly faster than the economy and that means by definiti

joining us to discuss, austan goolsbee and jason furman. the jobs number was negative for the first time since april. a lot of those jobs in the restaurant industry, which didn't get a carve out in this last stimulus package. what do you think? >> look, i think the jobs number is awful, and it's a sign that there's a high danger that we have a double-dip recession. we had the downturn at the beginning of covid. a rapid rebound, but all of us have been warning that that could easily stall out and hopefully this isn't going to be permanent because it definitely stalled out in the last couple of months. the virus is the boss here. and we had a resurgence of the virus. the president was basically doing nothing and didn't want to be in office even before the rioting began. and now we're paying the consequence. >> it's such an important point. the virus is the boss from a health and economic perspective. jason, i realize we say it all the time, the market isn't the economy, but it did stun a lot of people despite an attack on the u.s. capitol. ma

joined by austan goolsbee from chicago school of business and justin furman from harvard business school. welcome to you both. jason, i wanted to jump in with you. at first on maybe some reservations that yourself, the likes of larry summers have had about the wisdom of $2,000 stimulus checks. before we get into all of that, do you want to react -- i think tyler godspeed just just stepped down from his seat. >> i think he did the right thing in resigning and i think anyone who is not preserving the safety and security of our country could send a message by resigning at this point >> okay. i'll give you a chance to kind of comment --. jason, go ahead. >> i was going to answer your economic question, which is that i think the most important development for the economy this week is that the democrats took the senate with that you'ret more up-front relief, economic rebuilding, and it's no surprise markets are focusing on that development and positive development in the economy this week. higher than they were a year ago. we have excess consumer savings of maybe $1.6 trillion going right now. you just heard last hour ab