Here are 5 ways Trump would make the economy 'weaker' if elected to 2nd term: top economist

05 September 2024

Donald Trump has been hammering Vice President Kamala Harris relentlessly on the economy, blaming the policies of the Biden Administration for inflation. And in Pennsylvania, early September robocalls from former Rep. Tulsi Gabbard of Hawaii — an ex-Democrat who has endorsed Trump — have echoed that theme.

But economist Joseph Stiglitz, in a biting op-ed published by The Guardian on September 5, lays out five ways in which he believes a second Trump term would make United States economy "weaker, less competitive and less equal" if he defeats Harris in November.

Five concerns Stiglitz addresses are: (1) imposition of tariffs, (2) repealing the Inflation Reduction Act, (3) waging war on universities, (4) rejecting sciencefweak and (5) undermining the rule of law.

"The U.S. presidential election in November is critical for many reasons," Stiglitz argues. "At stake is not only the survival of American democracy, but also, sound stewardship of the economy, with far-reaching implications for the rest of the world. American voters face a choice not only between different policies, but between different policy objectives."

Stiglitz adds, "While the vice president, Kamala Harris, the Democratic nominee, has yet to detail her economic agenda fully, she probably would preserve the central tenets of (President) Joe Biden's program, which include strong policies to maintain competition, preserve the environment — including reducing greenhouse gas emissions — reduce the cost of living, maintain growth, enhance national economic sovereignty and resilience, and mitigate inequality."

The economist warns that Trump's tariff proposals would be terrible for U.S. consumers.

"Consider his response to the challenge posed by China: a proposal to introduce blanket tariffs of 60 percent or more," Stiglitz explains. "As any serious economist could have told him, this would increase prices — not just for the goods imported directly from China, but also, for the innumerable other goods containing Chinese inputs. Thus, lower- and middle-income Americans would bear the brunt of the cost. As inflation rises and the U.S. Federal Reserve is forced to raise interest rates, the economy would be hit by the triple whammy of slowing growth, rising inflation and higher unemployment."

Stiglitz continues, "Making matters worse, Trump has adopted the extreme position of threatening the Fed's independence."

Joseph Stiglitz's full op-ed for The Guardian is available at this link.

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