Economist Justin Wolfers is once again directing criticism at President Donald Trump, this time taking aim at the administration’s sweeping tax and spending bill, which Trump has described as “one big, beautiful bill.”
What Happened: Speaking on the TheRickWilson podcast on Tuesday, Wolfers said the current budget being debated includes deep cuts to social safety nets like Medicare and Medicaid, while preserving or expanding benefits for the ultra-wealthy.
“This one seems to bundle up a whole bunch of things that are going to cause social cost and economic cost to a lot of people,” he says, adding that it is “stacked towards the upper end of the upper end of the upper end of the economic food chain.”
The University of Michigan professor later emphasized the kind of impact this type of fiscal policy will have on everyday Americans. “If you drove yourself to work, you’re one of the people who’s probably going to get less out of this,” he said. “It’s just pure reverse Robin Hood.”
Wolfers argues that budgets aren’t just economic plans, but rather a “statement of values” and ultimately a “moral statement.” Referring to the cuts made to Medicare and Medicaid, he says, “If your values are that you don’t want to make sure poor people have health insurance, that’s your statement.”
The economist also warned that the budget’s structure could validate recent concerns about U.S. creditworthiness, pointing to Moody’s downgrade as a rational response to persistent fiscal instability.
Rising bond yields will increase borrowing costs significantly, Wolfers says, “a small percent times a humongous number is a very large number.”
Why It Matters: Other prominent economists have since weighed in on this bill, echoing similar views. Craig Shapiro posted on X, saying that the bill “will explode the deficit while enriching the highest decile of Americans at the expense of the lowest decile.”
“Another opportunity squandered and further proof that the Republican Party continues to cater to the wealthiest Americans time and time again,” he says.
Sen. Elizabeth Warren (D-Mass.) and Senator Bernie Sanders (I-Vt), alongside several other Democratic leaders, have denounced the bill, Sanders calling it a “death sentence” for millions of Americans, while offering $235 billion in tax breaks for the wealthiest 0.2%.
According to the Congressional Budget Office (CBO), changes to Medicaid could leave 8.6 million people uninsured within a decade. The Democrats have since called it a fresh attempt by the GOP to gut the Affordable Care Act.
The bill does include some provisions Trump campaigned on, such as eliminating federal taxes on tips and overtime pay, which is finding support.
Photo Courtesy: Joshua Sukoff On Shutterstock.com
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