On Friday’s broadcast of FOX News Channel’s “America Report,” Dr. Mohamed El-Erian, an economist, president of Queen’s College, Allianz chief economic advisor, and former chairman of the Obama World Development Council, discussed President Joe Biden’s economic policies. has been effective, but said: From a job market perspective, “the reason they’re not working is to provide security for average Americans.”
asked co-host Sandra Smith. [relevant exchange begins around 2:40] “I heard you talk about the economic headwinds, and I think it’s important to note how ordinary Americans don’t realize how much this is happening, and it’s primarily the wealthy who are benefiting from this, and the administration is working hard to help. The very people who say they are putting in the money are actually not benefiting.” The stock market moves. So, do you think this president’s economic policies are working? ”
Mr. El-Erian replied: “So what they’re working in is a job market where the unemployment rate has been less than 4% for 28 months. That’s an incredible record. What they’re not working with is the average It’s about giving Americans security. And that’s clear from the research: They’re worried about prices, they’re worried about their future wages, their pandemic savings are now negative, they’re using their credit cards. The limit has been reached in a significant portion.”
Then Smith interjected and asked. “Are you worried that this is the next shoe you’ll drop?” Credit card usage is increasing. I haven’t seen any major changes in the delinquency rate, but is there?”
Elarian interjected. What worries me is, think of a car that doesn’t have a spare tire. So if the job market goes into turmoil, which I hope it doesn’t, but for some reason companies start laying off more people, we no longer have the spare tire of savings. Households with incomes have used up their pandemic savings, and most have maxed out their credit cards. ”
He added: “I’m worried that the economy will start to slow down much sooner than most people think.”
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