Fox Business Network host Larry Kudlow warned Monday of the unintended consequences of stimulus payments and high government spending.
KUDLOW: These big stimulus packages passed last December and January are, in fact, temporarily helping the economy to rise up, and we are seeing it in the first quarter. But here’s something that I don’t like, and I have to credit my good friend DJ Nordquist. She was our World Bank executive director, former CEA [Council of Economic Advisers] staff director. She sent a memo to Kevin Hassett, Larry Lindsey, and myself to show that unfortunately these “stimmies” are actually stimulating China as much or more than the U.S.
China’s GDP [went] up 18% in Q1, led by exports rising 38%, those are exports to the U.S. It’s a new record. Meanwhile, US retail sales jumped 14% in the first quarter.