Trump, Dem infrastructure plan weakens US economy, dollar: Market watchers
Market watchers aren’t sharing the same optimism as the White House and Democrats are on a possible $2 trillion infrastructure package.
Capitalist Pig Hedge Fund Manager Jonathan Hoenig told FOX Business Tuesday he thinks the $2 trillion investment will be a real negative not only for the economy, but certainly for the U.S. dollar and debt levels.
"It always leads to cronyism and it always leads to malinvestment and make-work jobs. Did we not learn our lesson when President Obama said that the shovel-ready jobs just weren't there?" Hoenig told Neil Cavuto on "Cavuto: Coast to Coast."
Hoenig also said he misses "the old GOP who opposed the type of government spending under President Obama."
"We know Democrats want to enlarge government, so what worries me now is that there is no opposition to growing that debt, growing that deficit, and that it continues to climb," Hoenig added.
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Moody's Capital Markets Chief Economist John Lonski also told FOX Business while everyone wants to see more spending on infrastructure, nobody wants to foot the bill.
"I think this is going to be a difficult bill to pass, especially from budget hardliners. And even if it is passed, by the time we get through all of the environmental regulations and restrictions and what not, we may not begin to feel the impact of it until several years later," Lonski added.
Lonski also predicted consumers could face increased gasoline taxes which could be a detriment to economic activity.