Sixteen Nobel Prize-winning economists have sounded the alarm, releasing a cautionary letter about potential economic turmoil if former President Donald Trump returns to the White House.
“We the undersigned are deeply concerned about the risks of a second Trump administration for the U.S. economy,” the letter, published by CBS News, begins.
The economists stress the importance of the U.S. maintaining “normal and stable relationships with other countries,” warning that Trump’s unpredictable actions could jeopardize this stability and America’s global standing.
While acknowledging their diverse views on economic and business policies, the group unanimously agrees that President Joe Biden’s economic agenda is “vastly superior” to Trump’s.
They credit Biden with fostering a strong labor market recovery through pandemic stimulus efforts, suggesting that another term for Biden would support a more inclusive economic rebound.
In contrast, they caution that Trump’s proposed policies, such as a 10% tariff on all imports and significantly higher tariffs on Chinese goods, could inflate prices and act as a de facto tax on American consumers.
There’s also concern over Trump’s intent to pressure the Federal Reserve to lower interest rates, which could reignite inflation.
Trump’s campaign threats of mass deportation add to their worries. Economists argue this could devastate the U.S. workforce, particularly in construction and agriculture, leading to labor shortages and spiking consumer costs.
The letter’s signatories include esteemed laureates like George A. Akerlof, Sir Angus Deaton, Claudia Goldin, Sir Oliver Hart, and Joseph E. Stiglitz.
They conclude with a stark warning:
“The outcome of this election will have economic repercussions for years, and possibly decades, to come. We believe that a second Trump term would have a negative impact on the U.S.’s economic standing in the world and a destabilizing effect on the U.S.’s domestic economy.”
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