A group of 16 Nobel Prize-winning economists have issued a stark warning that inflation would be worse under Donald Trump.
The former president would reignite inflation and cause lasting damage to the US economy, the Nobel laureates said in a letter first obtained by axios.
“While each of us has different views on the details of various economic policies, we all agree that Joe Biden’s economic agenda is far superior to that of Donald Trump,” the letter reads.
The warning was led by American economist Joseph Stiglitz, who won the prestigious economics honor in 2001.
Inflation remains a hot-button issue for voters ahead of November’s presidential election, and Trump has long used criticism of the so-called “Bidenomy” as a way to drum up support.
A group of 16 Nobel Prize-winning economists have issued a stark warning that inflation would be worse under Donald Trump.
The economists wrote: “We believe that a second Trump term would have a negative impact on the United States’ economic standing in the world and a destabilizing effect on the country’s domestic economy.”
‘Many Americans are worried about inflation, which has fallen remarkably quickly.
“There is rightly concern that Donald Trump will reignite this inflation with his fiscally irresponsible budgets,” they continued.
The annual inflation rate fell slightly to 3.3 percent in May, down from the previous month.
This is below the 40-year high of 9.1 percent in June 2022, but still above the Federal Reserve’s 2 percent target.
Stiglitz was joined in his warning by fellow Nobel laureates George A. Akerlof, Sir Angus Deaton, Claudia Goldin, Sir Oliver Hart, Eric S. Maskin, Daniel L. McFadden, Paul R. Milgrom, Roger B. Myerson, and Edmund S. Phelps. , Paul M. Romer, Alvin E. Roth, William F. Sharpe, Robert J. Shiller, Christopher A. Sims, and Robert B. Wilson.
Since prices soared in 2022, the Biden administration has been defending the economy.
The President is now keen to draw attention to former President Trump’s actual economic proposals, which are expected to be a key focus of the presidential debate later this week.
Trump’s top proposals include imposing a 10 percent tariff on all imports, a 60 percent tariff on Chinese imports, reducing corporate taxes and eliminating taxes on tipped wages.
Meanwhile, Biden plans to raise taxes on corporations. He has also kept his promise not to raise taxes on households earning less than $400,000, as families continue to feel the impact of rising prices.
It comes after a shocking report revealed that Trump’s new trade war could cost middle-class families at least $1,700 a year.
Trump wants to reduce America’s reliance on income taxes and instead make up for the deficit by raising import tariffs.
The former president has defended the tariffs as a boon to American workers, but new research says the policies could hurt American workers and industries and worsen international relations.
The warning was led by American economist Joseph Stiglitz, who won the prestigious economics honor in 2001.
“We believe that a second Trump term would have a negative impact on the United States’ economic standing in the world and a destabilizing effect on the US domestic economy,” the economists wrote in a letter.
Inflation remains a hot topic for voters ahead of November’s presidential election
Trump’s aggressive trade proposals would cost consumers at least $500 billion a year – or at least 1.8 percent of GDP – according to a paper published by the nonpartisan think tank Peterson Institute for International Economics.
That’s five times the cost of the US-China trade war that the former president started in 2018, he found.
Separate analysis The presidential candidates’ spending spree released earlier this week found that Trump increased the national debt by nearly twice as much as Biden did during his presidency.
Trump approved $8.4 trillion in new 10-year loans over his entire term, according to the nonpartisan public policy think tank Committee for a Responsible Federal Budget.
Meanwhile, President Biden has given the green light to $4.3 trillion of the same type of loan with seven months left in his term.
Even excluding pandemic-era relief spending from the count, Trump still contributed more to the national debt while in office, according to the report.
The winner of November’s presidential election faces a bleak fiscal outlook, with the national debt on track to reach a record share of the economy under the next administration.
Debt surpassed the $34 trillion mark earlier this year and is poised to surpass $56 trillion by 2034, according to projections earlier this month.
The Social Security trust fund is also headed toward depletion in 2033, when only 79 percent of scheduled benefits would be paid.
If Congress does not ensure that these programs have the resources to continue paying full benefits, this would mean that millions of Americans would see their monthly benefits cut.