Looks like the mainstream media picked a bad time to stop “fact-checking” presidents.
Despite repeated claims by President Joe Biden that economists support his $1.9 “COVID stimulus” spending scheme, a large number of economists disagree.
Biden told a CNN town hall event in February
This is the first time in my career — and as you can tell, I’m over 30 — the first time in my career that there is a consensus among economists left, right, and center that is over‐ — and including the IMF and in Europe — that the overwhelming consensus is: In order to grow the economy a year or two, three, and four down the line, we can’t spend too much. Now is the time we should be spending. Now is the time to go big.
That’s such a brazen lie even so-called “PolitiFact” rated it false.
For one, when The Wall Street Journal polled who the media believe to be leading economists on the preferred size of a “stimulus” bill, a majority said it should be less than what Biden demands.
That means Biden’s claim, that there is a consensus among economists supporting unlimited spending, is a complete lie.
Some economists, like Olivier Blanchard, former chief economist for the International Monetary Fund – the very body cited by Biden – warn the government can indeed spend too much.
“When you make the sum of all these needs, which are real and have to be satisfied, you don’t get to $1.9 trillion. You get to a smaller number,” says Blanchard.
Liberal former Clinton administration official Larry Summers also warned that money is not an unlimited resource and Biden’s COVID spending could leave nothing for other government functions.
Many economists completely disagree with the failed belief government can “stimulate” the economy by confiscating or borrowing money and spending it on their own schemes.
The American Enterprise Institute’s Desmond Lachman warns of the obvious consequences of Biden’s spending spree.
“Lachman, like the other more cautious economists, worries about overheating the economy with too much cash. The resulting inflation would lead to higher interest rates, which, Lachman argues, would send world financial markets into a tailspin,” PolitiFact reports.
Inflation, driven in part by existing massive COVID spending, has increased 4.2 percent over the last 12 months. That is the highest increase since 2008 and is still growing.
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