Chief economist warns US now facing problems of 'lower-income and developing countries'
A former chair of the Council of Economic Advisers says Republicans and President Donald Trump have set the nation up for the kind of snag that plagues developing and low-revenue nations like Tunisia and Egypt.
Jared Bernstein, a distinguished policy fellow at the Stanford Institute for Economic Policy Research, tells the New York Times that he used to oppose budget hawks fretting “about America’s deficits and debt.”
“No longer,” said Bernstein. “I, like many other longtime doves, am joining the hawks, because our nation’s budget math just got a lot more dangerous.”
Bernstein said he fears U.S. officials are tempting “debt shock,” which periodically hobbles countries like Zambia, if they are forced to address spiraling debt by either aggressively cutting spending or by raising taxes. Both of these tactics would “seriously damage the economy and lower the living standards of everyday people.”
https://www.msn.com/en-us/money/markets/chief-economist-warns-us-now-facing-problems-of-lower-income-and-developing-countries/ar-AA1IhbLO
A guy with multiple bankruptcies is setting the economic agenda. What do you think could happen?
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