‘We can’t shut down economy again’

Treasury secretary also says more government spending is needed.

Treasury Secretary Steven Mnuchin said the U.S. shouldn’t shut down the economy again even if there is another surge in coronavirus cases.

“We’ve learned that if you shut down the economy, you’re going to create more damage — medical problems that get put on hold,” Mnuchin said Thursday on CNBC. “We can’t shut down the economy again.”

Mnuchin added he believes President Donald Trump made the right decision to urge states to ease social-distancing rules that have crippled the U.S. economy. He said in the event of a resurgence, it will not be necessary to impose restrictions again because COVID-19 testing and contact tracing are improving and officials understand more about how to contain outbreaks.

Mnuchin echoed an argument advanced by Trump and Health Secretary Alex Azar: The health costs of the shutdown may exceed the toll of the virus or already have.

While the U.S. has seen a decline in some services, such as cancer screenings and childhood vaccinations, during the lockdown, health experts have warned it’s a false choice to weigh those directly against the pandemic.

The U.S. continues to see

around 20,000 new cases and 1,000 deaths per day from the virus, with rising case totals in states including Georgia, Arizona and Texas.

Meanwhile, the economic shut down has put more than 40 million people out of work. While some of those jobs are starting to return faster than expected, the unemployment rate was 13.3% last month.

Mnuchin credits a bipartisan effort to inject about $6 trillion into the economy through fiscal and monetary stimulus for the beginnings of an economic recovery. But he says more spending will be needed.

“One of the things we’re going to need to be focused on is how do we help the industries that are especially impacted: hotel, travel, entertainment, restaurants,” he said. Also under discussion, he said, is federal aid for state and local governments, and support for small businesses impacted by recent looting linked to protests against police brutality and racism.

“The president and I won’t be done until we get every single person back to work,” Mnuchin said Thursday, adding there is still money from the previous packages that remains unused. “Over the next month you’ll see another $1 trillion go into the economy.”

Key parts of the first three rounds of fiscal stimulus are set to expire in coming weeks. Unemployment benefits that were broadened under the pandemic will expire July 15, the same day that deferred tax payments are due.

The White House and GOP lawmakers, however, have indicated they won’t hold negotiations for the next stimulus bill until after the July recess.

KEVIN DIETSCH / POOL VIA AP “We’ve learned that if you shut down the economy, you’re going to create more damage,” says Treasury Secretary Steven Mnuchin.