Blackstone’s Tom Hill Says Fiscal Spending Needed to Lift Demandby
‘The problem is demand, is spending,’ Hill says in interview
Ray Dalio and Bill Gross have said fiscal measures may be next
Blackstone Group LP’s Tom Hill said governments should use fiscal policy to lift economic growth and inflation, joining a growing chorus of investors who are calling for more spending.
"The problem is demand, is spending,” Hill, the firm’s vice chairman, said in an interview on Bloomberg TV Tuesday. “We don’t have enough growth around the world and I think with fiscal QE you could actually get more demand.”
Investors including Bridgewater Associates’ Ray Dalio and Janus Capital Group Inc.’s Bill Gross have said that central banks’ quantitative easing will need to be supplemented by some form of spending stimulus. Gross said last month that the next step may be so-called helicopter money, an idea conceived by the late economist Milton Friedman.
"What I’d like to do is change the name because it’s a buzz word, helicopter money,” said Hill, who’s also chief executive of Blackstone Alternative Asset Management. “Why don’t we call it fiscal QE. So what we’ve got to do is now start to to get the fiscal element in the equation.”