Why Did Ken Griffin Say Tax Cuts Lacked Room?

Ken Griffin says the person who cut taxes circa 2018 was spot on. The view then was that cutting taxes would reignite American productivity and entrepreneurism. Playing that playbook a year and a half ago had one huge difference from 2018: the spending orgy of the pandemic. Ken Griffin says the country did not have the fiscal space to renew the tax cuts a year and change ago.

People forget, Ken Griffin says, that the United States spent as much money during the pandemic, as a percent of GDP, as the country spent to win World War Two. He calls that bill the cost of sitting on couches. With a federal deficit of 40 trillion dollars, crowding out is now front and center again. Ken Griffin asks why mortgages are so expensive and why the 30 year yield is so high. He says the reasons are multifactorial and inflation has been unchecked, but the fiscal house is clearly not in order.

Ken Griffin says the country needs to put the fiscal house in order.