Mark Cuban appeared on Fox News' "Watters' World" on Saturday night to discuss how he would approach the bailout of America a little more different than the current administration. Cuban said after the virus clears, "everything" will fundamentally change about this country.
Cuban calls President Trump's bailout of America "a good program," but says he would have done things a little bit differently:
"I would have set up overdraft protections for every single business," Cuban told host Jesse Watters. "The way we're doing it now, and trying to have everybody apply for a loan, that just adds friction to the process."
"And the same with the $1,200 stimulus checks," Cuban continued. "It's not that it's a bad program. It's a good program at this time. But if I would have done a little bit different. So effectively, if you have a small- or medium-sized business, we would just cover all your checks and then the Fed would reimburse your local bank for anything that you bounce."
"That way, you could keep all your employees employed, pay all your bills, pay your mortgage, pay your rent and utilities, and things can continue, somewhat at least, as normal," Cuban said.
Cuban said once the virus is eradicated, "everything" about this country will change. He referred to the transformation process as "America 2.0." However, he doesn't elaborate on the duration of this transformative period – but adds that there's no better place in the world to be than America when it comes to being an entrepreneur.
"When we get to the other side, you know, I've been calling it America 2.0. We're going to see what's in front of us," Cuban said. "We really don't know what to expect, what's on the other side. But what I do know is that in this country, all the entrepreneurs that you referred to, all the capitalists that exist here ... there is no better country."
"There's no other country I'd rather be in. Because I know whatever we find out there, companies are going to be invented. Entrepreneurs are going to adapt. United States of America, our people are going to adapt."
As for socio-economic changes, the transformation of America is going to start with consumer choices. At least 67% of the economy is services-based, and much of that will be reconstructed as people opt to stay home more and avoid large crowds.
In a post-corona world, the days of going to large social gatherings, such as sports games, casinos, and or even restaurants, are over for the time being. Cuban makes this point in the interview.
As we've also noted, the exodus from cities has already started. Many will want the comfort of home and land where they can protect their families, instead of riding out months-long lockdowns in a 550 square foot studio apartment in a dirty city filled with viruses. Another big trend that will continue to push people out of cities is that many employers have just found out that much of their workforce can work remotely. And as long as there's an internet connection, employees can work just about anywhere, even in rural communities.
And while Cuban did not put a timing on when this public health crisis would end. Harvard's top scientist at the T.H. Chan School of Public Health published a recent paper that describes how the US could see "intermittent" lockdowns through 2022.
We noted over the weekend that Goldman Sachs does not see an earnings recovery until 2023, which could mean the economy is crashing into a depression for the second quarter has done enough damage that will lead to lower and slower growth for the next several years.
And if you really want to know the most significant change that Cuban did not mention in "America 2.0," that is the virus crisis has been the perfect cover for governments and corporations to usher in a surveillance state that will rival China's.