The time has past when it made sense to claim the economy’s ongoing strengths–including robust consumer spending and ultralow unemployment–could possibly be credited to the Obama administration, Nobel prize-winning economist Robert Shiller said on CNBC’s “Trading Nation” Friday.
“Consumers are hanging in there. You might wonder why that would be at this time so late into the cycle. This is the longest expansion ever. Now, you can say the expansion was partly Obama,” Shiller said. “But lingering on this long needs an explanation.”
So what’s the explanation? President Donald Trump.
“I think that [strong spending] has to do with the inspiration for many people provided by our motivational speaker president who models luxurious living,” said Shiller.
Shiller said that a recession is likely years away thanks to the confidence and optimism Trump inspires.
The biggest risk: the impeachment inquiry.
“If he survives that, he might contribute for some time in boosting the market,” Shiller said. “We’re maybe in the Trump era, and I think that Donald Trump by inspiration had an effect on the market — not just tax cutting.”
CNBC star reporter Stephanie Landsman pointed out that Shiller “contends the next recession may not hit for another three years, and it could be mild.”