A pair of former treasury secretaries who served President Bill Clinton came out swinging Wednesday, furious at Donald Trump’s reckless handling of the nation’s economy.
Robert E. Rubin and Lawrence H. Summers unleashed on the president in a column in the New York Times, alarmed by what they see happening.
Though Clinton inherited massive debt, it was turned around with a “strategy of hoping for the best, while planning conservatively,” they wrote.
Trump, however, is throwing “chaos and a lack of discipline” at the problem, while spewing empty words about the nation’s march to greatness.
“We paired policies that reduced the deficit with others that stimulated investment,” they wrote.
“That set off a virtuous economic cycle of growth, deficit reduction, lower interest rates and thus more investment and growth. Fiscal responsibility helped contain inflation because it was accompanied by respect for the independence of the Federal Reserve and recognition of the importance of a strong dollar.”
Trump, however, has undertaken a very public war with Federal Reserve chair Jerome Powell, dubbing him “too late” and trying to force his hand while making it clear he wants him out of the job.
Meanwhile, he ignores expert advice against imposing tariffs and forces through a budget bill that will leave a massive deficit, they added.
“The country’s debt is the same size as its entire economic output, and if this legislative package passes, it could grow to 135 percent or more, with an annual budget deficit equaling 8 percent of gross domestic product, by 2035,” they wrote.
They concluded that Trump’s economic policy seems to be “magical thinking.”
