Peter Navarro told Newsmax on Friday that the divide between ordinary Americans' perception of the economy and the Biden administration was "like a Grand Canyon."
The director of trade and manufacturing policy in the Trump administration joined "Rob Schmitt Tonight" to discuss the state of the economy, which he believes the White House is being intentionally dishonest about ahead of the November midterm elections.
"This whole idea of co-opting the term supply-side economics and trying to say that their Keynesian, gorge, demand-side spending somehow is going to change the structure of the economy in a good way — not going to hunt," Navarro stated.
Giving examples of Biden's "cognitively dissonant" policies, Navarro cited California Gov. Gavin Newsom's request that residents cut back on electricity use while also advocating for a transition to electric vehicles.
"They finally figure out electricity is needed for these cars," Navarro said. "But if you look at the other end, tax credits: This is like the Tesla Full Employment Act, but not for cars made in the U.S. — they're made in China.
"What we're doing ... with this plan is exporting and increasing our supply chain dependencies on the electric vehicle supply chain, broadly around the world," the trade expert continued, adding that the Biden administration's policies were "just crazy stuff."
Navarro emphasized that a better barometer for how the economy is doing is by looking at the state of the stock and bond markets, noting how the two are both going down simultaneously, indicating "a stagflation scenario."
"Europe should scare the hell out of us," he noted. "Because, what's going on there, we can see up to or more a 10% drop in their GDP [gross domestic product] over the next six to nine months, simply because of the energy crisis that has been precipitated by Ukraine.
"We'll basically import both their inflation and their recession," Navarro concluded.
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