The ostentatious optimism with which the US federal authorities began to “flood” the crisis crown with money is now driving Washington into a dead end.
This was told by American experts in a commentary on The News York Times.
The publication notes that Washington’s elites, primarily Republicans, are beginning to realize that government support for the American economy may run low before the coronavirus is defeated.
Jason Furman, who collaborated with the Barack Obama administration and developed response measures during the 2008 crisis, notes that “the response to the pandemic has begun really promisingly.”
“But we are returning to a dead end of excessive optimism about the economy and excessive pessimism about the deficit that followed the financial crisis and unnecessarily prolonged the economic pain,” he notes.
Harvard economist and former U.S. Treasury Department employee Karen Dinan, in turn, claims that all government efforts and all financial expenses will be wasted if companies and ordinary Americans ultimately go bankrupt.
“The key lesson from the 2008 period is that the crisis can have long shadows,” Dinan explains. – Economic scars, when many enterprises go bankrupt and households become bloodless in this episode, will become a policy failure. Based on the experience of 2008, we are concerned that we will get tired of tax incentives before the need for this money ends. ”
As News Front previously reported, former US Secretary of Labor Robert Reich criticized the policies of the US administration, which save corporations in times of crisis but create bureaucratic delays when it comes to ordinary Americans.