Trump’s proposals are a recipe for soaring deficits and inflation: economists

15 July 2024

Presumptive 2024 GOP presidential nominee Donald Trump, who survived an assassination attempt at a campaign rally in Butler, Pennsylvania on Saturday, July 13, has been attacking President Joe Biden relentlessly on the economy.

The United States has enjoyed record-low unemployment during the Biden years. But many voters are resentful about inflation — which Trump blames Biden for — and the former president has promised to "quickly" lower prices if he wins the election and returns to the White House in January 2025.

According to some economists, however, Trump's tariff and tax proposals would make inflation worse.

Economists interviewed by The Guardian also warned that Trump's tax plan would increase the United States' federal deficit.

Owen Zidar, an economics professor at Princeton University in New Jersey, told The Guardian, "If you follow through on the tax promises, this just isn't going to add up."

Zidar added that there is an "inconsistency between the big tax cuts and the central goal of reducing inflation."

"If they follow through on what they say," Zidar told The Guardian, "it's going to be expansionary. It's going to expand economic activity, increase interest costs (on U.S. government debt) and boost inflation."

Bernard Yaros of Oxford Economics told The Guardian, "If we do get across-the-board tariffs, that's going to add to inflation immediately."

Read The Guardian's full report at this link.

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