Art Laffer: coronavirus stimulus spending would be a long-term ‘killer’ of the US economy

President Biden goes ahead with its $ 1.9 trillion coronavirus stimulus package, but increased spending could jeopardize the economy, warned Art Laffer, chairman of Laffer Associates,Kudlow” Tuesday.

Laffer told FOX Business Network’s latest program that the administration’s rampant spending would be better spent if it prioritized supporting healthcare or creating jobs.

“I think it doesn’t make sense,” he said. “Anything about health care, that makes a lot of sense… Anything about job creation, that would be good. But it’s [a cost of] much less than even a trillion dollars. That would be a small amount compared to the $ 2,000 billion.

“I think it’s a killer of the long-term economy of the United States,” he said.

BIDEN’S 1.9T STIMULUS MAY GIVE ALMOST $ 3,600 TO THE POOREST AMERICANS, ACCORDING TO ANALYSIS

While trillions of dollars in economic support may seem useful to many Americans right now, Laffer said this “huge” amount of money would not look so appealing after a future stock market crash and a soaring debt.

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“I think we still have a trillion dollars left from the forward stimulus package,” he said. “Two trillion is too much. We have gone from a debt level of 84% of GDP to 115% and it continues to rise.”

Laffer pointed out that Republican economists aren’t the only ones criticizing the increased spending. In a recent Washington post Editorial, former Clinton Treasury Secretary Lawrence Summers argued that “bold steps” such as these must be taken “with care.”

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“He thinks it’s way too big,” Laffer said. “Other people see this thing as potentially very damaging in the long run.”

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