Varney: Trillion-dollar coronavirus rescue packages are not sustainable
'We are now beginning to understand the level of economic pain, and the extraordinary cost of the rescue'
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FOX Business’ Stuart Varney, in his latest “My Take,” argues that trillion-dollar rescue packages are not sustainable if the coronavirus lockdown continues.
“The fourth rescue package is on its way: another half a trillion dollars worth of relief,” Varney said. “Add that to the previous three, plus the cash flowing out of the Federal Reserve, and we’re looking at what, $6 or $7 trillion thrown into the economy? And there’s probably more to come."
Varney added that Sen. Schumer is seeking $150 billion in aid for state and local governments.
“The question we keep hearing: Is this enough? Are we done yet? My answer is: If the shutdown keeps going much longer, no we’re not done. As long as people are told, no you can’t go to work. As long as businesses are told, no you can’t open, we’ll not be able to stop the vast and dangerous printing of money.”
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Varney also noted that Sen. Rand Paul, R-Ky., has spoken out against the rescue package.
“Sen. Rand Paul says ‘we can’t continue to print bailout cash’”, he said. “But that’s exactly what we’re going to do if this shutdown continues through May and into June. The lockdown pain is absolutely excruciating economically.”
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Varney said the U.S. must reopen as soon and safely as possible in order to avoid financial ruin.
"There is the risk of more infections, a ‘second wave’ perhaps. And there will be plenty of anxiety when you unlock your front door and socialize with friends and neighbors again. But there’s also high anxiety for people whose government check doesn’t meet their rent and mortgage payments. And small business owners whose life’s work is on the line," he said. "If the stay-at-home orders and the economy shutdown keeps going much longer, you ain’t seen nothing yet."
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Protestors gather outside the Louisiana State Capitol during a rally against the state's stay-at-home order and economic shutdown. (Photo by Chris Graythen/Getty Images)
Varney noted that states including South Carolina, Georgia, and Texas have begun to reopen and lift coronavirus restrictions, but he also believes "we need to go further and faster."
"We are now beginning to understand the level of economic pain, and the extraordinary cost of the rescue," he said. "You want to see anxiety? Watch what happens to your money if we’re locked down tight into June. Trillion-dollar rescues... are not sustainable. Stay closed and we're ruined. Open up soon and we can recover."