CNBC host Joe Kernan slammed the Sunday New York York Times editorial Heading the Wrong Way Monday on "Squawk Box."
The article written by the New York Times editorial board makes the dubious claim that Republicans are hurting the economy by pushing for "austerity" while the Obama Administration is "doing better" by "adding new taxes and investments":
Republicans have insisted on austerity for ideological and political reasons. The administration has done better by adding new taxes and investments to the cuts, but the reductions are still deep and damaging.
Kernan, joined by Harvard Business School professor Robert Kaplan blasted the Times‘ assertion that adding new taxes is beneficial to the economy:
JOE KERNAN: That's the part that was to me either was dishonest or the people writing it don't understand economics. Now, I have gone in and looked at the New York Times editorial board. I found one person that does have an economics degree, Terry Tang. […] Anyway, we have a Harvard professor. And I talked to you a little bit. But how do you characterize that statement?
ROBERT KAPLAN: I don't understand it. They might want to rewrite that sentence.
Kaplan went on to point out the U.S. economy is not feeling the full burden of its national debt mainly because of artificially low interest rates, a fact ignored by the New York Times in their editorial:
ROBERT KAPLAN: […] My fear is this. This deficit doesn't feel that bad and this amount of debt doesn't feel that bad because interest rates are so low.
BECKY QUICK: Right.
ROBERT KAPLAN: Imagine if we had, quote, unquote normal interest rates, 5 percent, 6 percent, 10-year, we would be taking much tougher action [on the national debt]. And we shouldn't wait for that. […]