Trump's refusal to bail out cash-strapped cities will blow up in his face at election time: economist
Donald Trump (Photo: Gage Skidmore/Flickr)

On CNN Saturday, University of Michigan economist Justin Wolfers said he was "baffled" by President Donald Trump's flat refusal to allow coronavirus stimulus to go to city governments, ostensibly because they are being mismanaged by Democrats and don't deserve more money.

"I took calls from journalists throughout the last two or three years saying, what is it Trump is going to do in late 2020 to artificially goose the economy to get re-elected? And people were thinking of all sorts of ideas," said Wolfers. "The Democratic Congress has sent him a $3 trillion bill and he's refused to sign it."

"It's not just that," he added. "If you look at state and local governments, they have balanced-budget rules. As the tax revenues are falling with the recession and as the spending needs are rising, their budgets are out of balance. It's almost certain that we're going to hear a lot of stories through September, October, early November, of state governments firing police and firefighters and teachers. I've got to say, that's not the sort of story I'd want to hear if I were the president trying to get re-elected in early November."

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