With nearly 2 million Americans being vaccinated a day, infection rates falling, businesses and schools reopening, the feeling in the air is things are beginning to look on the bright side again.
With 300,000 jobs added this February, this past week’s job’s report seemed to confirm that optimism, with economist Steven Moore telling The Cats Roundtable report was a “blow out.”
“This economy is a rocket-ship,” Moore said optimistically. “It’s really ready to take off, starting in April or May. I think the rest of this year for the economy is really looking strong, as we open up our businesses, our schools, our stores, our churches.”
But Moore’s confidence in the economic recovery could be put at risk with the injection of a new stimulus bill. Moore called the bill unnecessary.
“I think most of the spending is wasteful and not related to Covid,” Moore admitted, but told The Cats Roundtable it was because he thought “the economy is propped for a nice, nice recovery this summer.”
But he mourned the partisanship that has led to a slow, patchwork reopening of the US economy.
“The red states pretty much are opening up already,” Moore said. “Once we get New York and California and Illinois and New Jersey and some of these other states opened up, I think you’re going to see really nice growth.”
And there are other waves that could shake the ship toward recovery, such as the rise in oil prices, which have skyrocketed since Biden’s election. Moore said oil prices were a “leading indicator of where inflation is going” and called the increase “something that should be concerning.”
“Now look, inflation is still pretty low,” Moore explained. “So I’m not jumping out the windows here—but look at the gas prices at the pump. That’s the price people pay in most states, we’ve seen about a 35 to 40 cents a gallon increase. That’s a pretty large pinch in the pocket for a lot of middle class and lower-income people.”
For these reasons, Moore expressed dismay at the Fed’s lack of concern about inflation, telling The Cats Roundtable it was time to “start worrying.”
“We’re flushing the economy with cheap money,” Moore warned. “We’re flushing the economy with massive amounts of trillions of dollars in debt—at some point that has to lead to an increase in prices.”
A strong economy emerges out of the strong policies of a president who understands the needs of the American people. But under a Biden administration, Moore believes a strong economy will emerge despite the leadership of the current president.
He told The Cats Roundtable he was positive about the rising voices in the GOP who could return that strength to the office in 2024. Those voices included Florida Governor Ron DeSantis and South Dakota Governor Kristi Noem, who has received praise for reopening their economies.
“I’m thinking maybe Donald Trump, maybe Ron DeSantis of Florida, or maybe, wouldn’t it be something, the governor of South Dakota, Kristi Noem,” Moore said. “She’s done an amazing job in South Dakota keeping the economy open keeping people safe and healthy.”
Listen to the interview below