Bernanke pushing infrastructure spending, tax reform instead of tax cuts

Bernanke pushing infrastructure spending, tax reform instead of tax cuts

Ben Bernanke on Sunday pressed for infrastructure spending and tax reform, saying they would benefit the economy more than tax cuts.

“I think that it is important, as I mentioned, even though the recovery is proceeding, the underlying growth path is not very strong. Productivity gains have not been very strong,” Bernanke said on CNN’s “Fareed Zakaria GPS,” referring to President Trump’s proposed tax cuts.

Bernanke, who served as chairman of the Federal Reserve under former President Barack ObamaBarack Hussein ObamaHave our enemies found a way to defeat the United States? Millennial momentum means trouble for the GOP Biden's Cuba problem: Obama made a bet and lost MORE, pointed to supply side economics to justify his argument.

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“What we want to do is try to improve the supply side of the economy, make it grow faster, have greater potential,” he said.

“And I think that probably that to do that, I would think that on the fiscal side, that infrastructure spending that improves our roads, our bridges, our schools, and tax reform, not necessarily tax cuts, but reform that makes the system simpler, more efficient, those would probably be the highest-return fiscal actions in terms of getting higher growth,” he continued.

“If I have to increase the deficit, I think I'd rather do it on infrastructure and maybe tax reform,” he added.

Bernanke also said partisan politics makes lawmakers dig in their heels rather than working together to help improve the economy.