{"id":562947,"date":"2021-06-14T07:51:41","date_gmt":"2021-06-14T11:51:41","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=562947"},"modified":"2021-06-14T07:51:45","modified_gmt":"2021-06-14T11:51:45","slug":"top-democrat-economist-warns-of-biden-inflation-hard-to-put-out-fire-without-doing-a-lot-of-damage","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/top-democrat-economist-warns-of-biden-inflation-hard-to-put-out-fire-without-doing-a-lot-of-damage\/","title":{"rendered":"Top Democrat Economist Warns Of Biden Inflation: \u2018Hard To Put Out Fire Without Doing A Lot Of Damage\u2019"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">36<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ftop-democrat-economist-warns-of-biden-inflation-hard-to-put-out-fire-without-doing-a-lot-of-damage%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=562947&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/06\/Biden-7-1200x800-1.jpg\" class=\"ff-og-image-inserted\"  style=\"display:none\"><\/div>\n<p>A top Democrat economist is warning that the size of President Biden\u2019s economic stimulus is causing the economy to \u201coverheat\u201d and that it may melt down if Democrats do not start pumping the brakes quickly.<\/p>\n<p>Larry Summers, who held top economic positions in the Clinton and Obama administrations, told PBS\u2019s \u201cFiring Line with Margaret Hoover\u201d on Saturday that the Federal Reserve was, \u201cin the face of a housing market on fire,\u201d \u201cintervening in the markets,\u201d adding, \u201cSeems like that\u2019s adding gasoline.\u201d<\/p>\n<p>Summers\u2019 warning comes as jobs report numbers have seen <a href=\"https:\/\/www.dailywire.com\/news\/biden-torched-over-disastrous-jobs-report-hes-not-the-next-fdr-hes-the-next-jimmy-carter\">abysmal<\/a> months under Democrat President Joe Biden and <a href=\"https:\/\/www.foxbusiness.com\/economy\/inflation-sending-cost-of-groceries-cosmetics-up\">inflation<\/a> has <a href=\"https:\/\/www.cnn.com\/2021\/05\/25\/business\/inflation-economic-growth-biden\/index.html\">skyrocketed<\/a>.<\/p>\n<p>\u201cIf you looked at how the economy was coming into this year, we had total wages and salaries coming to people were 20 or 30 billion dollars a month lower because many of them had to be home because of COVID and the economy was slowed,\u201d Summers said. \u201cBut we put in a stimulus that was putting into the economy more than 200 billion dollars a month. And so when you take a hole and you overfill it, you\u2019re likely to have problems. That started to manifest itself. It manifests itself in the fact that even though people say there\u2019s high unemployment, the number of businesses with vacant jobs is higher than it\u2019s ever been. Another indicator that economists use to kind of sort things out is how many people are quitting, because when times are really tight in the labor market, people feel like they can quit. So, on all these kinds of indicators, you\u2019re seeing, it seems to me, some inflationary psychology take hold.\u201d<\/p>\n<p>\u201cAnd I think we know that inflation\u2019s like a lot of other things, it\u2019s a lot easier to prevent than it is to cure,\u201d he continued. \u201cAnd I think the credibility of policymakers, including those at the Fed, is much easier to preserve than it is to restore.\u201d<\/p>\n<p>Summers said that he thinks that Biden is potentially setting up the country \u201cfor bigger\u201d economic problems \u201cin the future.\u201d<\/p>\n<p>Summers said a lot of the problem is that the Biden administration is still acting as if the economy were in the same shape that it was 6+ months ago, when, in reality, the economy is in a very different spot and potentially \u201coverheat[ing].\u201d<\/p>\n<p>\u201cThe main risk is that our economy\u2019s going to overheat,\u201d he said. \u201cAnd then once it overheats, it\u2019s going to be hard to put out the fire without doing a lot of damage and causing a lot of problems. And so I\u2019d like to see us shift towards a policy concern. I mean, let me give you another example.\u201d<\/p>\n<div readability=\"8\">\n<p>\u201cOkay,\u201d Hoover responded.<\/p>\n<\/div>\n<div readability=\"13\">\n<p>\u201cWe\u2019ve got houses, a housing market in an incredible place,\u201d Summers continued. \u201cFor the first time since they started having these statistics, the majority of houses are selling above their asking price.\u00a0Why in the face of a housing market on fire should the Fed be intervening in the markets to buy up mortgage-backed securities and subsidized mortgages?\u00a0Seems like that\u2019s adding gasoline.\u201d<\/p>\n<\/div>\n<p>Summers said that it was \u201ccompletely inappropriate\u201d to continue to be providing \u201cunemployment insurance on excessively generous terms where we\u2019re giving people more money for not working than they would have earned working.\u201d<\/p>\n<p>Republican governors have led the charge to stop those benefits in an effort to get people back into the workforce.<\/p>\n<p>Summers <a href=\"https:\/\/www.cnn.com\/2021\/05\/12\/politics\/inflation-worries-larry-summers\/index.html\">said<\/a> a few weeks ago that his concerns about the economy overheating \u201chave grown substantially over the last several months.\u201d<\/p>\n<p><i><span>The Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a <\/span><\/i><a href=\"https:\/\/www.dailywire.com\/subscribe\"><i><span>member<\/span><\/i><\/a><i><span>.<\/span><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A top Democrat economist is warning that the size of President Biden\u2019s economic stimulus is causing the economy to \u201coverheat\u201d and that it may melt down if Democrats do not &#8230;<\/p>\n","protected":false},"author":1,"featured_media":2280183,"comment_status":"close","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/06\/Biden-7-1200x800-1.jpg","fifu_image_alt":"Top Democrat Economist Warns Of Biden Inflation: \u2018Hard To Put Out Fire Without Doing A Lot Of Damage\u2019","footnotes":""},"categories":[],"tags":[],"class_list":["post-562947","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/06\/Biden-7-1200x800-1.jpg","fifu_image_alt":"Top Democrat Economist Warns Of Biden Inflation: \u2018Hard To Put Out Fire Without Doing A Lot Of Damage\u2019","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/562947","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=562947"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/562947\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2280183"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=562947"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=562947"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=562947"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}