On Wednesday’s broadcast of CNBC’s “Squawk Box,” Jason Furman, a professor of economic policy practice at Harvard University and the Harvard Kennedy School, said he served as chairman of the Council of Economic Advisers under President Barack Obama and is a member of the Council of Economic Advisers. He also served as a committee member. The National Economic Council under President Bill Clinton said that President Joe Biden’s student loan plan would put “upward pressure on interest rates, upward pressure on inflation,” and upward pressure on mortgage rates, and that the goal of the plan was to expand consumption. He said that this is true. This will result in something like this happening.
Furman said, “Look, we have unsustainable debt, mortgage rates are high, and the economy is on a soft landing.” This plan still estimates only a fraction of the cost. I haven’t heard, but if you look at the whole plan, it’s probably between $250 billion and $750 billion. Does that contribute quantitatively to the problems I’ve raised? No, you’re wrong about everything. Are we moving in that direction? Yes, we are, and we shouldn’t be doing that now.”
Co-host Becky Quick said, “I’ve seen the discussion of, “What are you saying this is going to cost anyone money?” It’s just, “Hmm, it’s gone, no one’s going to pay for this.” There is no need, and it will not bring any results. ”
Furman replied: [are], all kinds of magical pixie dust, discussions about pixie dust are out there. This is not the type of discussion that would get anyone a passing grade in my classroom. The purpose of this is to increase consumption, and in practice I have seen the analysis. [from] Proponents say this will increase consumption. Well, consumption is really, really strong right now. You are the one who makes your consumption even stronger. This creates upward pressure on interest rates and inflation. And, of course, this is recorded as an increase in spending, which ultimately leads to an increase in consumption. The road to debt. ”
to follow Ian Hanchett’s Twitter @Ian Hanchett
