The second-quarter gross domestic product could drop by as much as 10%, according to some estimates, and while a decline that steep could be catastrophic, TheStreet’s Jim Cramer has some ideas for saving the U.S. economy from the fallout of the coronavirus pandemic.
Cramer told members on his monthly Action Alerts PLUS call that he had been in contact with Treasury Secretary Steven Mnuchin and from those talks, Cramer said he genuinely believes "that what the government wants to do is put the money in the hands of the workers to tide them over.”
Cramer said that he pressed the Treasury Secretary to think as big as possible and model his response after his predecessor in the administration of Franklin Delano Roosevelt, the 32nd president of the United States from 1933 until his death in 1945.
On a personal level, Cramer said he wants to make sure that no individual “goes broke” during the pandemic that has brought many industries to a standstill.
When it comes to combating the spread of the virus pandemic, Cramer said the United States could model its response after China.
The China model says that America should create a state of martial law “where they take the people out of the equation. If you’re sick, you’re out.”
That tact seems to have worked in China, Cramer noted.
The United States needs to act fast as testing is starting to ramp up and we could see a surge in positive tests for the coronavirus. Since the positive tests, the stock market has been sent down as the threat of recession looms for investors. Relief may be coming from a stimulus package being debated in the Senate.
Check out the video above for the full discussion.