Stephen Moore: US Will Eventually 'Pay the Piper' on Govt Spending Economist Stephen Moore speaks at CPAC 2020. (Samuel Corum/Getty Images)
By Eric Mack | Sunday, 18 April 2021 01:08 PM
While we are enjoying a "rocketing stock market," one that "seems to defy gravity," economist Stephen Moore says, ultimately the U.S. will "have to pay the piper" on massive government spending initiatives.
"I'm enjoying this rocketing stock market," Moore told Sunday's "The Cats Roundtable" on WABC 770 AM-N.Y. "It seems to defy gravity these days."
Moore, a former Trump campaign economic adviser, noted while President Joe Biden "is certainly not preventing this rocketing stock market," the table was set by former President Donald Trump and the long-anticipated revival from the global coronavirus pandemic.
"Certainly, Trump deserves a great deal of the credit," Moore told host John Catsimatidis, "because you're right, John, you nailed it: Operation Warp Speed, the vaccine has been a lifesaver both in terms of human life and a lifesaver for the economy and businesses as well.
"We are starting to see a record number of businesses opening their doors again. We're starting to see schools, and we're starting to see churches, and we're starting to see playgrounds, beaches, and even the movie theaters, even cruise ships are starting to open up again."
But this growth might ultimately be stifled by President Joe Biden's agenda and massive spending plans, including infrastructure, Moore contended.
"The economy is looking generally strong right now," Moore said, before adding, "I have two worries, John: No. 1, I do worry about what I am calling the hangover effect from the $6-7 trillion of new spending that Biden is calling for. There will be a day of reckoning.
"You will have to pay the piper," Moore continued.
"I think there will be a considerable slowing of growth once we have to repay this debt."
Expanded unemployment benefits from the past Biden stimulus package has incentivized unemployed workers to remain out of work.
"We're also seeing a real severe problem around the country in businesses not being able to get their workers back on the job," Moore concluded. "That is because we were paying workers sometimes twice as much money for staying unemployed then for going back on the job. And that is going to keep people out of the labor force. It will be a constraint on growth
"It's bad for the American economy.
"The idea that we are going to pay people so much money to not go back to work is going to be a big problem in the months ahead."