Jim Cramer: 'Rents Kill' Businesses—And Businesses Need Help
Larry Kudlow, in an interview with CNBC, said that it's "highly likely" that the House, Senate and White House will coordinate on a second economic relief package following the July recess.
Kudlow talked about what could be in the package, and said, "Things the president has talked about publicly. He has talked about a payroll tax holiday for the workforce, he’s occasionally talked about capital gains tax relief."
"[The president] wants to help out with some form of tax relief. Restaurants, entertainment, athletic contests, things of that sort...We want to help out the tourism business, which has been hurt very badly. We also want to reward people who are reemploying, who are going back to work," Kudlow continued.
This comes after stark warnings for U.S. growth prospects from two regional Federal Reserve Presidents, Neel Kashkari and Eric Rosengren, the latter of whom noted that the "lack of containment (of the virus) could ultimately lead to a need for more prolonged shut-downs, which result in reduced consumption and investment, and higher unemployment."
So, what do we need to hear from government officials about this possible second relief package?
Jim Cramer says, "it's rent." Rent, he added, is hurting businesses. As a small business owner himself—Cramer owns an inn and two restaurants—he said "the rents kill you and we need subsidies for rents."