• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Sixteen Nobel Prize-winning economists warn a second Trump term would ‘reignite’ inflation
Editor's Pick

Sixteen Nobel Prize-winning economists warn a second Trump term would ‘reignite’ inflation

by June 26, 2024
by June 26, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Sixteen Nobel Prize-winning economists signed a joint letter Tuesday warning of what they see as economic risks if former President Donald Trump were to serve a second term, including reheated inflation.

“While each of us has different views on the particulars of various economic policies, we all agree that Joe Biden’s economic agenda is vastly superior to Donald Trump’s,” the economists wrote. Axios was first to report the letter.

“There is rightly a worry that Donald Trump will reignite this inflation, with his fiscally irresponsible budgets,” wrote the group of politically progressive academics.

Trump has so far proposed making his first-term tax cuts permanent, imposing universal tariffs on all imports, with a China-specific tariff rate between 60% and 100%, and pressuring the independent Federal Reserve Board to cut interest rates.

Joseph Stiglitz in Paris on Sept. 15, 2022.Joel Saget / AFP via Getty Images file

Economists and Wall Street analysts alike have predicted that any or all of those proposals could reinflate prices, which remain vulnerable despite cooling slightly in recent months.

Joseph Stiglitz, who won the Nobel Prize in 2001, led the effort to publish Tuesday’s letter. His co-signers include George Akerlof, Sir Angus Deaton, Claudia Goldin, Sir Oliver Hart, Eric Maskin, Daniel McFadden, Paul Milgrom, Roger Myerson, Edmund Phelps, Paul Romer, Alvin Roth, William Sharpe, Robert Shiller, Christopher Sims and Robert Wilson.

“Nonpartisan researchers, including at Evercore, Allianz, Oxford Economics, and the Peterson Institute, predict that if Donald Trump successfully enacts his agenda, it will increase inflation,” the economists wrote.

Stiglitz said he felt compelled to initiate the letter based on a flurry of recent polling in which voters said they trusted Trump over Biden to manage the U.S. economy.

“A lot of people think Trump would be better for the economy than Biden,” Stiglitz told CNBC in an interview. “I thought it would be important for Americans to know that at least a group of credible economists differs very strongly.”

The timing of Tuesday’s letter was notable, coming just days before Trump and Biden are scheduled to face off in the first presidential debate of the general election. The Atlanta debate hosted by CNN is expected to dedicate significant time to the economy and specifically, inflation.

The Trump campaign staunchly rejected the Nobel economists’ position.

“The American people don’t need worthless out of touch Nobel peace prize winners to tell them which president put more money in their pockets,” Trump campaign spokesperson Karoline Leavitt said in a statement to CNBC.

Under Trump, the December year-over-year Consumer Price Index fell during three of his four years in office.

The Biden campaign seized the opportunity to tout the letter on Tuesday: “Top economists, Nobel Prize winners, and business leaders all know America can’t afford Trump’s dangerous economic agenda.”

The Nobel laureates’ letter contained a distinct political perspective, as well as an economic one.

Many of these economists signed a similar September 2021 letter expressing support for President Joe Biden’s Build Back Better package. Critics at the time argued that the massive spending packages would drive up inflation.

At the time, Stiglitz observed that some people “invoked fears of inflation as a reason to not undertake” the Build Back Better investments. “This view is short-sighted,“he said in a press release.

This time around, Stiglitz and his co-signers took a more cautious approach to inflation, after the U.S. economy has spent that last year recovering from 2023′s scorching inflation spike.

The higher prices were partly due to pandemic-era supply chain snarls, which left the global trade system unable to meet the pent up demand of American consumers.

But this demand was itself the result of a U.S. economy that weathered the pandemic better than many had anticipated it would — thanks to generous government subsidies like the expanded Child Tax Credit and the Paycheck Protection Program.

Since then, Stiglitz said, Biden has helmed a successful effort to cool those inflation peaks.

“Inflation has been brought down, actually, remarkably quickly,” he said. “I would say it’s because of Biden.”

This post appeared first on NBC NEWS
You Might Also Like
  • Trump implies government could cut contracts and subsidies to Musk’s companies
  • Two plead guilty to insider trading related to Trump Media merger
  • Cruise, Waymo approved to operate robotaxi services in San Francisco despite safety concerns
  • Why Chappell Roan and other artists find themselves among the 25 million uninsured Americans
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Hooters to close ‘underperforming’ restaurants amid broader industry woes
next post
Tesla’s Cybertruck recalled for a fourth time over two separate parts issues

You may also like

Advertisers boost spending at retailers such as Walmart and Amazon...

May 25, 2024

Harris to propose federal ban on ‘corporate price-gouging’ in food...

August 15, 2024

Home Depot is buying GMS for about $4.3 billion as...

June 30, 2025

Jury returns verdict in Sam Bankman-Fried fraud trial

November 3, 2023

Recalled cucumbers linked to at least 449 illnesses have been...

August 16, 2024

Paramount brands to lay off 25% of U.S. staff as...

May 12, 2023

Johnson & Johnson to pay $6.5 billion to resolve nearly...

May 6, 2024

Red Lobster cleared to exit Chapter 11 bankruptcy

September 6, 2024

Kroger chairman and CEO resigns following investigation into personal conduct

March 3, 2025

The installed base of fleet management systems in Australia and...

December 20, 2022

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Want Faster, Lower Risk Trades? Use This Setup

      July 9, 2025
    • The Seasonality Trend Driving XLK and XLI to New Highs

      July 9, 2025
    • Small Caps Are Rotating In — Here’s Why It Matters

      July 9, 2025
    • Amazon extends Prime Day discounts to 4 days as retailers weigh tariffs and price increases

      July 9, 2025
    • Breakout Watch: One Stock in Each Sector to Watch Now

      July 9, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,630 views
    • 2

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,919 views
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,607 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,576 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,449 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,167)
    • Investing (538)
    • Stock (2,660)

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Want Faster, Lower Risk Trades? Use This Setup

      July 9, 2025
    • The Seasonality Trend Driving XLK and XLI to New Highs

      July 9, 2025
    • Small Caps Are Rotating In — Here’s Why It Matters

      July 9, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,167)
    • Investing (538)
    • Stock (2,660)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Laid off from a high-paying job,...

    July 8, 2024

    Microsoft to roll out new autonomous...

    October 22, 2024

    Tariffs would be ‘catastrophic’ for sales...

    February 13, 2025
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here