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| Janet Yellen |
Janet Yellen, President-elect Joe Biden’s nominee to run the Treasury Department, will tell the Senate Finance Committee on Tuesday that the government must “act big” with its next coronavirus relief package.
Biden outlined a $1.9 trillion stimulus package proposal and says a multi-trillion dollar infrastructure spending program will follow that.
“Neither the president-elect, nor I, propose this relief package without an appreciation for the country’s debt burden. But right now, with interest rates at historic lows, the smartest thing we can do is act big,” Yellen, a former Federal Reserve chair, said in a prepared opening statement for her hearing before the committee, according to Reuters.
“I believe the benefits will far outweigh the costs, especially if we care about helping people who have been struggling for a very long time,” she said.
What an opportunist who will support whatever keeps her in power.
In October 2018 when Trump was in power, Yellen told CNBC’s Steve Liesman at the Charles Schwab Impact conference in Washington, that back then the U.S. debt path was “unsustainable” and “If I had a magic wand, I would raise taxes and cut retirement spending.” At the time, the debt was nearly $6 trillion less than it is now before Biden's big spending plans.
-RW
Stocks are going up thanks to her prepared remarks. It seems Wall Street believes Yellen will take good care of them, and she echoes a lot of the proposals lefty economists have been spouting for weeks in regards to the incoming Biden administration. Why interest rates are so low we would be fools not to spend exorbitant amounts of money on this crisis! After all, while I am concerned about the debt that is nothing compared to the potential harm to the economy if we don't do it. Not to mention an increase in the minimum wage and a bailout for all these Democratic run states.
ReplyDeleteThat's really the worst part about this budget proposal. These states blew out their budget years ago with their union based pension systems. Then covid hit and these states decided to stay shut down indefinitely with the expressed point of slowing the spread of the pandemic. Now I'm not generally a proponent of conspiracies as I assume stupidity in much of our political class. However, these states shut down their economies which made for a lot of economic hardship even if this wasn't evenly distributed throughout the country. With the economy in the tank Trump got the blame for failing to mitigate the virus and causing the economic fallout even though most of the economic hardship came from the shutdowns themselves. It was a big risk as it could have easily backfired in a way the riots did for Democrats in the Congressional races. On a side note,, you'll notice that now that Biden will be in office and the riots would have a negative impact on the executive, these same cities are calling for an end to these violent demonstrations.
Trump unfortunately was Trump, and put more focus in Biden's mental faculties rather than the actions of many of these states that caused the vast majority of economic suffering. So not only were these states able to negatively impact their political enemy and help to ensure Biden's victory. Now they can reopen their economies as Cuomo has proposed and get a nice bailout for their years long fiscal indiscretion. Maybe they were just influenced by dread risk fear and were able to politically benefit by coincidence, but this whole covid crisis thing worked out perfectly for the bad actors.
Welcome stealth inflation my old friend.
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