Former Trump administration economic adviser Stephen Moore says he’s already seeing anecdotal evidence of the harbingers of inflation, telling Newsmax TV on Monday that gasoline prices near his home have jumped 25% in only a few months.
Moore, a senior economist with the conservative/libertarian policy advocacy group FreedomWorks, noted that the recent federal spending initiatives – particularly a $1.9 trillion package which passed Congress without a single Republican vote, will eventually lead to inflation.
“We just passed this $1.9 trillion spending bill, and that will have – in my opinion – negative effects on the economy because bills have to be paid, right?” Moore said on “American Agenda.” “Either you have to borrow, and pay the money back…(economist) Milton Friedman always said ‘Spending is taxation. Either you tax people now, or you tax people later.
“If we continue to borrow the money, then you expect interest rates to rise, and you’d expect inflation to rise. Where I live in Maryland, we’re seeing a pretty big increase in gasoline prices. That’s one of the lead indicators of higher inflation.”
Moore explained that he paid $3.09 for a gallon of gasoline over the past weekend after having spent as little as $2.49 only a few months ago.
“That’s called inflation folks,” he said. “That’s higher prices and it affects every single consumer.”
Moore added that while Democrats touted $1,400 payments to individuals under the $1.9 trillion package, the totality of the spending bill costs the average citizen nearly eight times that much.
“If you do that on a per taxpayer basis, yeah, people are getting $1,400 checks, but do you know how much $1.9 trillion is for every taxpayer? Eleven thousand dollars,” Moore said. “So, this is not a winner for American taxpayers, it’s a big loser. So, I think it’s going to be very negative.”
What’s more, he said, the inflation will harm segments of the population that the Democrats said the spending package was intended to help, lower-income Americans.
“Who does inflation hurt the most?” Moore asked rhetorically. “Not the rich people. (If) gasoline prices go up by 50 cents or $1 a gallon, that doesn’t affect (Facebook CEO Jeff) Zuckerberg or (Berkshire Hathaway CEO) Warren Buffett, it affects the working-class Americans that are driving trucks or driving to work and they really feel the pain at the pump.
“And that’s why inflation is like an invisible tax on lower- and middle-income people.”
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