CNBC anchor Joe Kernan had the brains to directly tell White House economic adviser Jared Bernstein that the Biden administration’s policies have contributed to the market’s downfall. Discussing the poor current economy, Kernan stated the president is “once again bowing to the far-left. Does that justify increasing demand and making things worse right at this time, Jared? I know you know, there’s no way you can sell this to me with a straight face.”
Specifically, Kernen argued that President Joe Biden’s student loan forgiveness plan, which provides $10,000 in relief for those making under $125,000 a year and $20,000 for Pell Grant recipients, “will worsen the record high inflation numbers and the declining market. Inflation stood at 8.3% in August, significantly exceeding economists’ expectations.”
Bernstein had the audacity to say the impact on inflation will simply be “neutral” because student loan payments, which have been paused since the early days of the COVID-19 pandemic, will restart in January, offsetting the effects of the forgiveness. “So, in that sense, it’s a bit of taking a log off the fire and putting an equal size log on it,” he said, insulting our intelligence.
On the Biden administration boasting about lowering the deficit, which had dropped by $1.7 trillion since Biden took office, Kernan said these claims are misleading. Especially since the government is no longer pouring funds into “pandemic-related expenses.”
“You don’t believe that $7 trillion in three years has anything to do with inflation being at 40-year highs, Jared? Really?” asked Kernan.
“The increase, the percent increase in tax receipts into the treasury, is actually larger than the percent declines in spending, 26% to about 20% and the reason for that is the very strong economic backdrop,” he said.
“I think the important part on inflation, and people get this wrong too, is that when you have this degree of negative fiscal impulse, meaning the government is actually seriously on the fiscal break relative to last year, that’s disinflationary so both monetary and fiscal policy are pushing back against inflation,” Bernstein added.
The Daily Caller’s article brings up a study conducted by the Committee for a Responsible Federal Budget which found that student loan forgiveness would add $250 billion to the federal deficit, is likely be inflationary, and will provide little to no stimulus to the economy.