Former Obama administration economic adviser Betsey Stevenson criticized Republican vice presidential nominee J.D. Vance on Thursday for spreading misinformation about the effects of tariffs on consumer prices.
What Happened: Stevenson, who served on 44th U.S. President Barack Obama‘s Council of Economic Advisers and as chief economist at the Department of Labor, took to social media to rebuke Vance’s claims that tariffs on Chinese goods led to lower prices for Americans.
“The frustrating point about Vance’s lie is that policymakers need to know the true effects of policy and make decisions based on facts and preferences,” Stevenson wrote on X, formerly known as Twitter.
The University of Michigan economist’s comments came in response to a video clip of Vance stating, “Our corrupt leadership said if you put tariffs on China, prices will go up. Instead, Donald Trump did that, manufacturing came back and prices went down for American citizens.”
Stevenson cited former White House Council of Economic Advisers Chair Jared Bernstein‘s explanation of tariff economics, emphasizing the importance of understanding their actual impact.
“As @econjared46 honestly acknowledges tariffs raise prices to shift consumption toward domestic producers,” Stevenson noted.
Bernstein had earlier clarified the purpose of tariffs, stating, “The point of such tariffs is to raise the price of imports so consumers will buy domestic products. If they don’t change relative prices, they don’t ‘work.'”
See Also: Wall Street On Wait-and-Watch Mode Ahead Of Nvidia Earnings
Why It Matters: The criticism from Stevenson comes amid a series of controversial statements and actions by Vance. Recently, Vance appeared on NBC’s "Meet the Press" to defend former President Trump’s tariff policies, arguing against claims that these tariffs amounted to a heavy tax on American consumers.
Vance rejected the notion that tariffs cost Americans nearly $80 billion in new taxes, asserting that the real targets were foreign importers who rely on cheap labor to undercut U.S. workers.
Furthermore, Vance has been vocal about his opposition to the establishment of a Chinese battery plant in Michigan, attributing the decision to Democratic policies and Vice President Kamala Harris. He linked this to the Inflation Reduction Act (IRA), which Harris supported, accusing her of enabling Chinese companies to access clean-energy companies.
Adding to the controversy, Vance recently made headlines with a bold claim that owning a new car costs every American $50,000 a year, blaming Vice President Harris for the increase in costs. This statement quickly became a trending topic, drawing mixed reactions on social media.
Read Next:
Image Via Shutterstock
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
