A former top economic advisor to President Trump has said that Joe Biden’s infrastructure plan will lead to economic disaster.
Stephen Moore is criticizing Joe Biden’s $6 trillion spending plan. In an interview on Sunday, Moore said the economy is continuing to recover after COVID-19 lockdowns, and yet another round of fiscal stimulus is not necessary. Moore, an economist in the Trump administration, Moore says passing President Joe Biden’s $2 trillion debt bill would be the “dumbest thing” as the inflation rate continues to climb.
“If you look at what’s happening with basic raw materials and problems in the supply chain, you just see prices across the board rising,” said Moore, who also appeared on Newsmax’s “The Count” with Peter Morici on Saturday.
He added the biggest danger to the economy is raising taxes, which Biden claimed is necessary to fund his spending proposals. Moore also criticized Biden’s proposals to extend higher unemployment benefits, saying it prevents Americans from seeking jobs. He continued on to say it hurts small and medium businesses.
“Connecticut, Rhode Island, New York, New Jersey are continuing with those benefits, and that means it’s going to be a real burden on small businesses in states like that because it’s hard to compete with your rich Uncle Sam when you’re trying to get your workers back on the job,” said Moore.
Meanwhile, Democrats in Congress are pushing Biden to approve a fourth stimulus check, but Morici, taking a jab at Rep. Alexandria Ocasio-Cortez, D-N.Y., commented that the White House “shouldn’t take the advice of former bartenders with regard to fiscal policy.”
“We have adequate stimulus in the system,” said Morici. “Folks have lots of money in their checking accounts because they haven’t spent what we’ve already sent them and their credit card balances are very, very low.”
“The bottom line is, do we start to see people get into an inflationary psychology, where businesses start the notion that they will have to raise prices every year?” said Morici.
“During the Trump years, wages went up; minorities did better, living standards improved. The businesses were able to couple this with productivity improvements, which kept prices in check. So that was a very virtuous cycle.”
Now with Democrats in charge, they’re following the “usual impulse” to raise prices, said Morici.
Moore agreed, saying, trillions of dollars have been pushed into the economy, and as a result, the consumer price index is up, but “it’s kind of phony,” said Moore.
“We’ve inflated all of this because of these giveaways,” he said. “One of the reasons the Wall Street has been on this bull market is that I believe we reached what I call peak Biden. What I mean by that is, I think that the wind is out of Biden’s sails.”