President Obama’s fiscal measures saved America from plunging into a depression, but Republican gains in next Tuesday’s midterm elections will make secondary efforts almost impossible and put the future of the U.S. economy in peril, says economist Nouriel Roubini.
Writing in the Financial Times, the New York University economist known as “Dr. Doom” explains that the expiration of existing stimulus and transfer payments will stall the economy precisely when it needs a boost. Further, a strong Republican showing in the midterms will embolden the opposition and weaken Obama, possibly resulting in Congressional gridlock.
Labeling the Republicans’ economic platform the “economic equivalent of creationism,” Roubini says a lack of bi-partisanism on fiscal issues could lead to a debt crisis and possibly send the U.S. into a Japanese-style bout of stagflation.