Media baron Steve Forbes said Friday the best thing President Joe Biden can do for the economy is “take a six-month vacation” and forget about his “$2 trillion” COVID-19 spending bill.
“If this administration took a six-month vacation on the economy, just opened up schools, continue with the vaccines, they’d look like geniuses,” Forbes told Fox News’ “The Faulkner Focus.”
“But instead this kind of binge spending, the regulatory regime they unleashing right now, putting in a whole bunch of new rules and regulations and the big tax increases they want to do later this year — all of that is going to be very serious obstacles for an economy that is really ready to roar.” (RELATED: ‘Like Calling Harvey Weinstein A Feminist’: Sen. Kennedy Says Biden’s Stimulus Bill Has Little To Do With COVID-19)
Forbes called the Biden administration “the greatest obstacle to the economy.”
“That nearly $2 trillion binge bill they have, only one-third of it is really for anything to do with COVID. The rest is political payoffs, especially to states that have mismanaged their economies like New York, California, Illinois, New Jersey.”
The former Republican presidential candidate said most of the bill “is going to suck resources out and lead to inflation in the future. Why? Because the Federal Reserve will be printing money.” Forbes noted that there is already $1 trillion in reserve from previous stimulus bills and the current legislation will add almost $2 trillion to that.
“This is a formula for disaster and much higher interest rates than we’re already experiencing.”
Biden’s stimulus package offers $1,400 direct payments to those Americans earning $75,000 or less or $2,800 to married couples with a combined salary of $150,000 or less. There are also $1,400 payments for each child living with a parent. It originally included a federally-mandated $15 minimum wage but that feature was removed.
Critics of the legislation say it contains tens of billions of dollars in pork-barrel spending.
Forbes said the Biden administration is following the same economic direction of the 1970s, “with the Federal Reserve printing money out of thin air.” (RELATED: ‘Chock Full Of Spending Porn’: Sen. Kennedy Blasts ‘Left Of Lenin, Neo-Socialist’ COVID-19 Stimulus Bill)
“You’re just getting a little taste of it now. Now the apologists will stay, ‘Don’t worry this will just be a one-time thing.’ No it’s not. When you print up hundreds of billions of dollars that’s going to course through the economy and it’s going to be with us for quite a while in a bad way.”
Some economists have raised concerns that the spending bill could prompt an outbreak of hyperinflation.