“Dire Consequences” for Most Americans from $3.5T Infrastructure Bill
Stanley Druckenmiller is one of the most influential investors in America today. He became a billionaire himself by making billions more for his clients as a fund manager. At the time he chose to close his asset management firm Duquesne Capital in 2010, after more than 30 years of investing other people’s money, it was managing over $12 billion in assets. Over the course of his career, markets themselves grew from billions to trillions in size.
That background confirms Druckenmiller as someone who gained both understanding and experience in handling very large sums of money in the real world. As such, he has a clear understanding of the impact the proposed $3.5 trillion “infrastructure” spending bill will have on Americans if it passes.
He has been making the rounds on Capitol Hill to warn politicians about the astronomically large spending bill. He warns they will guarantee “dire consequences” that harms low and middle-class Americans if they pass it. On July 23, 2021, he spoke with MSNBC’s Stephanie Ruhle on that topic, telling her what he’s been telling lawmakers.
What Druckenmiller Fears from Biden’s Infrastructure Bill
Here is the video of the segment:
To be sure, many people will focus on Druckenmiller’s comments describing how Darth Vader would destroy the U.S. economy by unleashing inflation through excessive spending. But he describes the real risk he sees from the infrastructure bill’s excessive spending near the end of the clip:
It’s going to cause a financial crisis. It’s going to cause inflation and nothing is going to hurt the poor more than that. And by the way, if it does, every dollar we’re spending now, that in my opinion we don’t desperately need, is not going to be available in a future crisis, whether it’s another pandemic or economic decline that’s hurting the poor or middle class.
That’s the consequence of the Biden-Harris administration’s unsustainable fiscal path. Achieving true fiscal sustainability requires treating the national debt like an emergency reservoir. Now that the crisis is past, spending growth needs to be restrained and the economy needs to grow to replenish the reservoir. Doing so will make it possible to weather the next crisis much more easily.
If there is one thing to be learned from history, it is that there is always a next crisis.