Abuse Praise: Budget Deficits and Association Meeting

abuse praise: It could lead to an explosion of public debt and ultimately cause a serious loss of confidence and a deep recession, Columbia University professor Edmund Phelps was quoted by Bloomberg as saying, according to Global Times China. At the annual American Economic Association meeting held in Chicago, Phelps also criticized Trump's singling out of individual companies for abuse and praise, saying such interference could prevent newcomers from entering markets and bringing with them much-needed innovation, the report said. Trump's plans for big tax cuts and spending increases pose risks. While other presidents have run big budget deficits in the past, they depended on foreign purchases of US debt to do so. There is a broad consensus that the kind of policies that our president-elect has proposed are among the policies that will not work, Columbia University professor Joseph Stiglitz said. Now, with Trump threatening to renegotiate US trade agreements and shift to an America First policy, the willingness of foreigners to keep buying US government securities can't be taken for granted, said Roger Myerson from the University of Chicago. (news.financializer.com). As reported in the news.