Former Trump economic adviser: The government gave money to the people, but the stimulus is the Chinese economy – Former White House chief economic adviser: U.S. stimulus checks boosted China’s economy

In response to the epidemic, the Biden administration has issued a third round of economic stimulus checks for Americans. There has also been a lot of hype that the U.S. economy will get a strong boost if people spend their checks. Former White House chief economic adviser Larry Kudlow warned Monday (19) that stimulus checks and high government spending could have unintended consequences.

Kudlow, now the host of Fox Business, warned on his show that the stimulus checks are actually stimulating the U.S. and Chinese economies as much, if not more, than the latter.

“These big stimulus packages that were passed last December and January have, in fact, temporarily helped the economy go up, as we saw in the first quarter.” Kudlow said.

Indeed, as Kudlow said, U.S. retail sales jumped 14 percent in the first quarter. And at the same time, China’s exports to the U.S. rose 38 percent, and led by exports, China’s GDP rose 18 percent in the first quarter.

Kudlow helped to clarify the thinking in detail: First Congress “foolishly” concocted nearly $3 trillion in “stimulus”. These “stimuli” led in part to a surge in consumer spending, but unfortunately, much of that surge was spent on a variety of goods and gadgets, including Apple’s iPhone. All of this has led to massive growth in China’s economy and exports, and the U.S. trade deficit with China has risen to a new high.

This was completely unexpected, and it was a major unintended consequence,” Kudlow said. Do we really want to help China in this way? Do we really want to stimulate the Chinese economy? I don’t think so.”

Kudlow noted that the stimulus checks did have a positive effect on China, however. He argues that excessive government spending is bad, raising taxes is bad, and the “stimulus package” for China is super bad. The Communist Party can use the money it makes to buy military weapons to attack U.S. networks, threaten Taiwan, and other things, and to stop international criticism of human rights in China, including the persecution of the Uighurs in Xinjiang and democracy in Hong Kong.

Three prominent economists contacted by Fortune, a U.S. business magazine, said sending $1,400 to about 150 million people would not stimulate anything. The entire campaign amounts to a shell game, simply shifting billions of dollars from one part of the economy to another, especially from funding businesses to develop production to spending on things like restaurants, clothing and cosmetics.

Even the Congressional Budget Office (CBO) admits that the debt burden from all these stimulus checks sprinkled in 2020 will slow down the U.S. economy for years to come.