logo
Summers: No economist ‘without a strong political agenda' says Trump bill good for economy

Summers: No economist ‘without a strong political agenda' says Trump bill good for economy

Yahooa day ago
Former Treasury Secretary Larry Summers railed against President Trump's massive tax and spending bill, saying no objective economist would characterize the legislation as a boon to the economy.
'There is no economist anywhere, without a strong political agenda, who is saying that this bill is a positive for the economy. And the overwhelming view is that it is probably going to make the economy worse,' Summers told ABC News's George Stephanopoulos in a Sunday interview on 'This Week.'
'Think about it this way,' he continued. 'How long can the world's greatest debtor remain the world's greatest power? And this is piling more debt onto the economy than any piece of tax legislation in dollar terms that we have ever had.'
Trump on Friday signed into law his potentially legacy-setting policy bill, encompassing a wide array of campaign promises and agenda items, from military and immigration measures, to major cuts to national healthcare, to numerous industrial incentives.
The heart of the bill, however, is an extension of the 2017 tax cuts.
Without those tax cuts, the bill is expected to cut deficits by $500 billion over 10 years, according to The Congressional Budget Office and the Joint Committee on Taxation.
But with those cuts included in the accounting, the cost is $3.3 trillion, or about 9.1 percent of the total U.S. debt stock of $36 trillion. This number does not include additional interest costs necessary to pay for the debt.
Revenues from tariffs are expected to offset a significant portion of the cost at about $2.5 trillion, not counting macroeconomic and debt-service costs, but are still less than the overall cost of the bill.
The White House, however, has argued that the economic growth sparked by the bill will alleviate the costs. The White House Council of Economic Advisers issued a report projecting up to approximately $11 trillion in deficit reduction from growth, higher tax revenue and savings on debt payments.
Asked in the interview to respond to that report, Summers said, 'It is respectfully nonsense.'
'None of us can forecast what's going to happen to economic growth,' he added.
'What we can forecast is that when people have to hold government debt instead of being able to invest it in new capital goods, new machinery, new buildings, that makes the economy less productive,' he continued. 'What we can forecast is that when we're investing less in research and development, investing less in our schools, that there is a negative impact on economic growth.'
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Stock market today: Dow, S&P 500, Nasdaq futures rise as Trump ramps up tariff threats ahead of August deadline
Stock market today: Dow, S&P 500, Nasdaq futures rise as Trump ramps up tariff threats ahead of August deadline

Yahoo

time4 minutes ago

  • Yahoo

Stock market today: Dow, S&P 500, Nasdaq futures rise as Trump ramps up tariff threats ahead of August deadline

US stock futures rose as President Trump threatened stiff tariffs on imports from more than a dozen countries and delayed the return of sweeping April levies. Futures attached to the Dow Jones Industrial Average (YM=F) hovered near the baseline, while S&P 500 futures eked out 0.1% gains (ES=F) and contracts on the tech-heavy Nasdaq 100 (NQ=F) rose 0.3%. On Monday, stocks fell as Trump posted to Truth Social letters addressed to the leaders of 14 countries threatening 25% to 40% tariffs starting August 1. Key US trading partners Japan and South Korea were among the group, as well as Malaysia, South Africa, and Indonesia. The president also signed an Executive Order Monday officially moving his July 9 deadline for the resumption of "Liberation Day" tariff rates to August 1. Read more: The latest on Trump's tariffs "The President may send more letters in the coming days and weeks," a statement from the White House said. In an early response to a tariff letter, South Korea said it would kick trade negotiations with the US into high gear, adding that it considered the new date an extension of a grace period. Other than on the trade, Wall Street expects a quiet week in terms of economic releases and earnings. Minutes from the Federal Reserve's June meeting land Wednesday, and Delta (DAL) kicks off earnings season Thursday. Oil dipped early Tuesday morning as investors eyed the impacts of Trump's fast-approaching tariffs, despite the deadline for implementation being pushed until August. In combination with tariff speculation, OPEC+ announced a decision to increase supply in August, further lowering the price of the commodity. Bloomberg reports: Read more here. Oil dipped early Tuesday morning as investors eyed the impacts of Trump's fast-approaching tariffs, despite the deadline for implementation being pushed until August. In combination with tariff speculation, OPEC+ announced a decision to increase supply in August, further lowering the price of the commodity. Bloomberg reports: Read more here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Iran's government says at least 1,060 people were killed in the war with Israel
Iran's government says at least 1,060 people were killed in the war with Israel

The Hill

time7 minutes ago

  • The Hill

Iran's government says at least 1,060 people were killed in the war with Israel

DUBAI, United Arab Emirates (AP) — Iran's government has issued a new death toll for its war with Israel, saying at least 1,060 people were killed and warning that the figure could rise. Saeed Ohadi, the head of Iran's Foundation of Martyrs and Veterans Affairs, gave the figure in an interview aired by Iranian state television late Monday. Ohadi warned the death toll may reach 1,100 given how severely some people were wounded. During the war, Iran downplayed the effects of Israel's 12-day bombardment of the country, which decimated its air defenses, destroyed military sites and damaged its nuclear facilities. Since a ceasefire took hold, Iran slowly has been acknowledging the breadth of the destruction, though it still has not said how much military materiel it lost. The Washington-based Human Rights Activists group, which has provided detailed casualty figures from multiple rounds of unrest in Iran, has said 1,190 people were killed, including 436 civilians and 435 security force members. The attacks wounded another 4,475 people, the group said.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store