White House trade and economic adviser Peter Navarro predicted Friday that Joe Biden will "reverse-engineer" President Trump's successes and cause social and economic turmoil, as well as potential long-term stagflation.
"Making Money" host Charles Payne asked Navarro what he predicts will happen to Trump's legacy with Democrats holding the White House and both houses of Congress.
"Charles, I think you just have to reverse-engineer what President Trump did to understand that we’re going to be in deep trouble," Navarro answered. "The way that President Trump was able to restart the manufacturing base with the corporate tax cut that brought money and investment onshore; deregulation, which basically enhanced the global competitiveness of manufacturing; cheap energy [which] basically unleashed strategic dominance in the energy sector. Again, that helped businesses.
"What we can expect from a Biden administration is to unwind that, basically reverse-engineer it, and what that will mean is we will go 'back to the future' of the Obama administration from 2008 to 2016, where we had very slow growth. I think it’s going to be worse."
Payne noted that the U.S. economy lost 140,000 jobs in December, adding that many people lost their livelihoods not due to the federal government, but "draconian" shutdown orders from governors in places like Pennsylvania, New York, New Jersey and California."
"I think [there are] two things that Joe Biden is going to have trouble with [in] his own party," Navarro predicted. "One is this tendency toward lockdowns. That’s something that the president fought strongly against. But the other is the teachers’ unions and this move essentially to stay home. That’s a snowball effect, because not only are you depriving the children themselves of key elements of education at a key, important time, but you are saddling the parents at home, making it difficult for them to get back in the workforce.
"There's one likely scenario of a stagflation scenario where, in a few months, a Democrat-controlled government will panic and throw trillions more in [stimulus]. It won’t work, it will ause inflation, we’ll have a stagnation scenario, at some point that catches up to the stock market and we get a really sharp move down."
In the wake of Wednesday's violence on Capitol Hill, Navarro said Trump is not the reason for the unrest and added that several prominent Republican figures who have spoken out against Trump recently "need to shut up," -- naming former Ambassador to the United Nations Nikki Haley, Sen. Lindsey Graham, R-S.C. and Sen. Mitt Romney, R-Utah.