Tom Steyer: On some level 'we're making up the playbook' on coronavirus response

Businessman and Former Democratic Presidential Candidate Tom Steyer joins Yahoo Finance’s Sibile Marcellus joins Akiko Fujita to discuss the best ways to respond to the health crisis and economic fallout following the coronavirus.

Video Transcript

AKIKO FUJITA: Well, as states begin the process of reopening their economies, California certainly faces a very tough road ahead. Governor Gavin Newsom estimating unemployment in the state could top 20%, with the state experiencing one of the largest or one of the longest, I should say, stay at home periods. Remember, the state was one of the first to close.

To talk more about the road to recovery we are joined by businessman and philanthropist Tom Steyer, who is heading California's economic recovery task force. He's also, of course, the former presidential-- Democratic presidential candidate. And we're also joined by Sibiile Marcellus.

Tom, it is great to have you on today. I heard you say recently that California's economy is in freefall. And I'm curious if you can just give us the state of play here right now as you see it, the challenges that California faces at-- as it looks to get its economic engine running again.

TOM STEYER: Well, let me explain what I was trying to say a little more, Akiko, which is this. Someone was asking me whether this was like 2008. And I said, no, 2008 was a overleveraged bank problem centered around housing. That is a fairly normal balance sheet recession in the context of the United States that worked out, you know, pretty much according to plan, even though it was very, very upsetting and unnerving. And literally millions of people lost their houses. And there was dramatic pain associated with it.

But this is very, very different. This is a very sudden and sharp reduction in economic activity as a result of a health crisis, of the coronavirus pandemic. And so what I'm saying is we're going through that change very, very fast and very, very sharply. And so this is a completely different thing from 2008.

It is in some ways unique because what people keep trying to compare this to is the 1919 flu epidemic after the First World War, when we were a completely different society with completely different medical capabilities, completely different communications capabilities, where we responded very, very differently. And so at some point, at some level, we are making up the playbook of how to respond to this health crisis and this ensuing very, very sharp economic slowdown.

SIBILE MARCELLUS: So you mentioned that you're deploying your coronavirus playbook. Now, in terms of states in the country where we're seeing coronavirus cases rise, California is actually one of them. And you're also reopening the economy. So how do you balance both, the economic considerations and public health safety?

TOM STEYER: Well, Sibile, Governor Newsom has said from the very start of this crisis that health is going to be the number one consideration, protecting the safety and lives of Californians is number one. That's why he can shut down the California economy very early and moved into shelter in place first in the country. And it actually protected thousands and thousands of California lives. And what he's done subsequently is have a very phased reopening of the economy, piece by piece with very strict protocols of how the different businesses are going to be operated in the different phases to-- to protect the health and lives of the working people in those businesses and also their customers.

And so when you think about what is going to provide the most robust and long-lasting recovery, analysis says that it is actually in those places where their leaders protect the health first, that that's actually what leads to the most robust, strongest long-term recovery. And Governor Newsom has been very consistent in saying health comes first. He will data-driven by the health, statistics including very granularly, not just statewide. We're a huge state with 40 million people but also by each one of the 58 California counties. And on a much closer level on that to see where the real hotspots are and to allow that data to drive how we reopen and to make sure that it's an iterative process where he's responding to the health statistics as they come--

SIBILE MARCELLUS: From a practical standpoint, so what does that look like for people who live in California, reopening? What does that look like for restaurants, for offices?

TOM STEYER: Well, what it means is that there is a phasing by sector, you know, retail stores, restaurants, manufacturing plants, you know, beauty salons, barbershops. It's phased. And there are protocols for how you're going to do it. In particular, it is done county by county. So if a county has statistics that say it's not safe to move into phase three and open the following things, then they have the purview to do that.

But at the same time, the person who is leading us and who really has done a very, very good job-- I think people in California overwhelmingly support what Governor Newsom has done and what he's doing-- is in fact Governor Gavin Newsom. And he is the person who is really setting the tone for what we're going to emphasize and how we're going to do it.

And you know, in fact, he sent out a tweet two days ago that I think moved a lot of the people who I know, including ones who are on the task force and have nothing to do with the task force, saying, over the last two weeks, hospitalizations related to COVID-19 have gone down by 7%. And ICU usage is basically flat. So I can tell you he is very, very focused on statewide health statistics. He is very focused at a much more granular level than that to make sure that, as we reopen, we're not reigniting the pandemic.

AKIKO FUJITA: Tom--

TOM STEYER: --really driven by science, health, and data. Excuse me, go ahead, Akiko.

AKIKO FUJITA: Tom, I'm curious about when you look at the overall playbook, where the issue of climate and sustainability fits into that, you of course have passionately spoken out on this issue. Gavin-- Governor Newsom has been as well. Is this an opportunity, potentially, to reimagine sort of the way in which to grow the economy while keeping the issue of climate at the forefront?

TOM STEYER: You know, Akiko, I really think it is. And our task force is focused on supporting the governor in the near term with giving him reactions in terms of how the protocols protect workers and whether they're practical for the businesses. So there's a very near-term focus. But there's also an awareness that we're going to be reinvesting and recreating California in the long term. And that's going to be part of the reaction to this health crisis and this pandemic.

And in our mission statement for the task force, it says specifically that we're going to be trying to create a just, equitable, sustainable, and resilient California. And we know that we're going to be investing in this rebuilding. And in the long term what all of my research and I think research across the board shows is that a sustainable California is more productive. It creates hundreds of thousands more good-paying jobs. It actually puts us in a position to lead the world in a way that we have to do if we're going to actually have a natural world that supports us, our children, and our grandchildren.

So absolutely, part of the mission station task force specifically relates to equity, to equality between citizens and recognizing that that has to be in the forefront of our minds, but also of sustainability and clean energy.

SIBILE MARCELLUS: And one of the biggest employers we have in California, of course, is big tech. So I wanted to ask you to weigh in on what you're seeing here in terms of President Trump and the battle with Twitter.

TOM STEYER: Well, I think you're absolutely right, that big tech is centered in California. And in fact, they've been doing very well. You know, I'd have to point out that this virus has moved more activity across the board online. And so to the extent you're part of that community, this has actually been kind of a wind at your back. I think that the tech community in this fight with Mr. Trump, if you're referring to his-- his fight with Twitter right now and his--

You know, there is a huge argument here about supporting or editing the kinds of things that he said a couple of days ago. And I think that, you know, there is a real question about freedom of speech, freedom to mislead, freedom to use hate speech. It's something that didn't just start, you know, with this crisis coming out of Minneapolis. This is something that's been going on in terms of speech on the internet for a lot longer than that.

And I think there's an awareness that we can't-- that people can't be allowed to use the internet to foment violence and hatred. And you know, I always say to people, you have a right to free speech. You don't have a right to yell fire in a crowded theater. And that's really the line that we're trying to draw in this conversation between Twitter and Mr. Trump. You don't have a right to-- to say something that damages, threatens, or creates violence in our society that's the line.

AKIKO FUJITA: Tom Steyer, always good to have you on our show. And best of luck with the recovery process there in California. I hope to check in with you again. Thanks so much.

TOM STEYER: Akiko and Sibile, it's so nice to talk to you too. It's a great pleasure.