Former CBO Director and American Action Forum President Douglas Holtz-Eakin argued that President Biden's spending proposals are a "mystery" amid a "tremendous" U.S. economic recovery, during an appearance on FOX Business’ "Mornings with Maria."
DOUGLAS HOLTZ-EAKIN: This has been a mystery to me why there's all this talk about stimulus. We're having a tremendous recovery and the reason we're having a tremendous recovery is this has been a recession unlike any other we experienced. It wasn't the 20th century where incomes fell. It wasn't the 21st century where we saw big wealth destruction like the dot com bubble or the financial crisis. What we saw was the coronavirus stopped people from spending. They couldn't go to restaurants, they couldn't get on to airplanes, they couldn't stay in a hotel. And now that that's receding, the economy is coming back just fine. And the private sector has expanded payrolls throughout 2020 and will continue to do that.
What we're seeing more than anything else is supply-side shortages. We've heard a lot about the supply chain, a lot about the lack of workers. And that's the only thing holding the economy back. This isn't a world where we need lots of big government spending to make the economy grow. It's doing just fine.
[Biden’s proposed budget] doesn't add up. They're going to borrow an additional trillion and a half in federal debt over the next 10 years. So you've got big government, you've got big taxes, you've got big borrowing, you have no growth.
And so this is a vision where prosperity is in the government. It's not a vision consistent with our history and our principles where economic freedom and private enterprise drives the standard of living. It's a vision of making the government bigger and having people rely on it.
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