Though it looks bleak now, billionaire Mark Cuban believes that the American economy will bounce back after the COVID-19 pandemic subsides and people get back to work.
In an interview on the “Fox News Rundown” podcast, Cuban said he believes the pandemic will birth new companies and lead to innovative products that change the world for the better.
“That’s what makes America different. That’s what makes us unique,” he said. “We truly are a country of entrepreneurs. We have that spirit to go out and start companies, to be creative, to take risks.”
“There will be new products developed that really change the world,” Cuban continued. “That’s who we are as a country. And that’s why, as bleak as it can seem right now, and is horrific and tragic … we’ll get to the other side, I’m 100 percent certain and we’ll be different when we get there.”
When asked if Americans will be able to handle the price hike if manufacturing jobs in the U.S. increase, Cuban said that the consumers will determine that, adding that millennials are “a lot less price-sensitive than their parents and grandparents were in the past.”
“It’s up to consumers,” he said. “One of the things I’m seeing on ‘Shark Tank’ is that companies, particularly from millennials and younger, are coming in with a social component. They want their consumers to know that if you buy a t-shirt from them, they’re going to send a t-shirt to somebody who’s disadvantaged.”
“They’re going to be OK with paying a little bit more for made in America because they know what it means to their future,” he added.
As to the economy bouncing back, Cuban said that even though we are already in a temporary recession, Americans should not be fearful of the future.
“You can’t not be fearful right now, but I think we’ll bounce back … hopefully all the different branches of government and the different organizations within government can get money in people’s hands and if we do it fast enough, we’ll get through this. I have complete confidence,” he said.
On Wednesday, the U.S. Senate passed a historic $2 trillion stimulus bill to help keep the economy afloat during the shutdown. Cuban encouraged small business owners to take advantage of the “unprecedented” $367 billion relief package that will help them pay their employees during this difficult time.
“If you’re a CEO or an entrepreneur that owns your own business right now, you need to be up to speed immediately,” Cuban said. “If you keep your employees, if you have fewer than 500 employees and you commit to retain all your employees, the government’s going to pay their salary.”
When the shutdown first hit, Treasury Secretary Steve Mnuchin predicted that the COVID-19 pandemic would create an economic slowdown, not a recession. “The real issue is not the economic situation today. The real issue is what economic tools are we going to use to make sure we get through this because this is a unique situation,” he said last week. “Later in the year, obviously, the economic activity will pick up as we confront this virus.”