Sixteen Nobel Prize-winning economists have issued a joint warning about the potential economic risks if former President Donald Trump were to be re-elected for a second term.
What Happened: The economists, in a letter published on Tuesday, cautioned that a second Trump term could lead to a resurgence of inflation, reported CNBC. They expressed concerns about Trump’s proposed policies, including making his first-term tax cuts permanent and imposing universal tariffs on all imports.
"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. “There is rightly a worry that Donald Trump will reignite this inflation, with his fiscally irresponsible budgets," the group of politically progressive academics wrote.
The economists also highlighted Trump’s pressure on the independent Federal Reserve Board to cut interest rates as a potential factor that could lead to a rise in prices.
The letter, signed by economists including Joseph Stiglitz, George Akerlof, and Robert Shiller, was released just days before the first presidential debate of the general election. The debate, hosted by CNN, is expected to focus on the economy and inflation.
"A lot of people think Trump would be better for the economy than Biden," Stiglitz said. "I thought it would be important for Americans to know that at least a group of credible economists differs very strongly."
"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.
Trump’s campaign has dismissed the economists’ warning, arguing that the former president’s policies have actually led to a decrease in the Consumer Price Index during three of his four years in office.
See Also: Trump Reveals His Recipe For Economic Growth: ‘Regulation, Regulation, And Taxes’
Why It Matters: The economists’ letter, however, aligns with previous warnings about Trump’s fiscal policies. Former Treasury Secretary Larry Summers had criticized Trump’s fiscal policy last week, calling it “irresponsible” and warning that it could lead to stagflation.
Additionally, a report from the Committee for a Responsible Federal Budget indicated that Trump added nearly twice as much to the national debt during his term compared to Biden. This fiscal record is a critical point of contention as both candidates prepare for the upcoming debate.
In a recent episode of the All-In podcast, Trump highlighted the significance of regulations and taxes in driving economic growth. “I say regulation, regulation, and taxes, okay? I gave the biggest tax cut in the history of our country, a lot to businesses,” Trump said.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
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