Biden’s stimulus relief package has ‘a lot of spending in it,’ Kenneth Rogoff said.
President Joe Biden’s proposed $1.9 trillion stimulus package is “what he can get done politically,” Harvard economist Kenneth Rogoff told FOX Business’ “Mornings with Maria.”
However, the passage of the bill does not mean the U.S. will receive a “free lunch,” he said.
KENNETH ROGOFF: “Well, this may surprise you, but I’m broadly supportive of it. I think President Biden’s got to take what he can get while he can get it, which may not be for long. Yes, there is a lot of spending in it, which is really hard to explain. It’s not COVID-related
Why do people… who are doing well need a transfer? Maybe the way money is being allocated to the states isn’t the fairest, but nevertheless, it’s what he can get done politically. And he’s just taking it. And of course, that is not a free lunch
And all those people have been saying that… now some of the same ones are the ones panicking over inflation going up. But I would be better if he was doing infrastructure. That’s what he should be doing, of course. But he’s taking what he’s got razor-thin majorities
He doesn’t have support for much. He thinks he can get this through. He has to get something through. So I understand why he’s doing it. And I’m supportive of it, but not if you think it’s a free lunch.”