Issuing a dire warning on massive government spending leading to inflation, Trump economic adviser Stephen Moore said Americans do not need stimulus and handouts, they need an open economy and jobs.
“The best thing Joe Biden could do right now is stop spending, stop borrowing, stop regulating, and let the economy get better on its own,” Moore told Sunday’s “The Cats Roundtable” on WABC 770 AM-N.Y.
While the stock market is rising, it is based more on the trillions of coronavirus pandemic stimulus injected from past stimulus packages than true economic growth.
“I think there is irrational exuberance in the market right now; I get worried about it,” Moore told host John Catsimatidis.
“There are families [that] get $100,000 of government benefits. If you can get $100,000 of government benefits for not working, it’s going to be hard to get people back on the job.”
Equally dire is the incoming inflation that is as inevitable as it is ignored by the Biden administration right now.
“I kind of laughed when I saw this week Fed Chairman Jerome Powell say, ‘Hey there’s no inflation out there; we don’t see any inflation’: He should get out more,” Moore said. He should go to the grocery store. He should go to the gasoline pump.
“The gas price is one of the lead indicators of inflation. And it’s the one thing that most ordinary Americans . . . pay that at the pump. It’s a big expense for people. The gas price is up 35 to 40 cents per gallon since Biden was elected. It’s just creeping up, going higher and higher and higher.
“Look at grocery prices. Those are rising too.”
Moore noted interest rates will be next to rise.
“This is not complicated: When the Fed is flushing the economy with cash and the government is massively spending money,” Moore continued, “you get more money chasing the same amount of goods. That has to lead to higher prices.
“When that happens, what happens to interest rates? They go up.”
The promise of COVID-19 vaccines is going to increase consumer confidence in returning to some shred of normalcy in the economy, Moore said, calling it “the only good thing we have going for us.”
“The vaccine is a massive stimulus to the economy,” he said, predicting, “by the end of April, most Americans will have the vaccine.”
“When that happens, you’re going to see businesses open; you’re going to see a rush of prosperity,” he concluded. “I just worry that it’s going to be short-lived.”
© 2021 Newsmax. All rights reserved.