Biden admin’s fiscal policy putting ‘cart before the horse’: Former White House economist

Former Council of Economic Advisers acting chairman Tyler Goodspeed argued America is seeing current levels of inflation because of the Biden administration’s economic policies on FOX Business’ "Mornings with Maria."

WAGES NOT KEEPING PACE WITH INFLATION INCREASES: TYLER GOODSPEED

TYLER GOODSPEED: The main reason [for inflation] is the administration -- fiscal policy has been putting the cart before the horse. So there has just been a massive amount of demand-side stimulus at the same time that the supply side has been severely constrained, in part because of transitory pandemic related factors, but also in part because of fiscal policy.

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So I think last month there was a big jobs number, which the administration celebrated. They really should have been thanking the 26 governors who suspended the emergency federal enhanced unemployment insurance benefits of $300 a week, which had been due. We had legislated in December for that to expire March 14. So I think the big jobs gains of last month probably should have arrived about four months earlier. 

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And I do worry that that fiscal policy moving forward is going to add to this inflationary pressure because it is both increasing, pouring more demand-side stimulus on onto the fire at the same time that they're constraining the supply side potential of the U.S. economy. 

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