Trump’s proposals could 'send inflation skyrocketing': economists

08 May 2024

Presumptive 2024 GOP presidential nominee Donald Trump and his allies have been hammering incumbent President Joe Biden relentlessly on inflation, claiming that Biden's economic policies are to blame.

Trump, according to Axios reporter Zachary Basu, "is betting that high gas and grocery prices will fuel his return to the White House" — while pushing "second-term plans" that, economists say, "could make inflation worse."

"President Biden's approval rating has suffered under the crushing weight of inflation, which voters consistently rank as their top issue for the 2024 election," Basu explains in a report published on May 8. "Trump, meanwhile, is taking advantage of his non-incumbent status, lobbing grenades from the sidelines as Biden has struggled to bring inflation back to pre-pandemic levels."

Basu adds, "Simmering frustration with high prices has allowed Trump to build a decisive polling advantage on the economy — while some of his own plans have largely escaped scrutiny."

Basu reports that according to economists and Wall Street analysts, at least four of Trump's economic proposals "carry significant inflationary risks."

Those proposals are: (1) "universal tariffs," (2) "lower interest rates," (3) "lower taxes," and (4) "limits on immigration."

According to Basu, "Trump's former trade chief Robert Lighthizer, who is likely to serve in a future administration, wants to devalue the U.S. dollar, Politico has reported. That would be a major shift in currency policy that could send prices of imported goods soaring."

Columbia University's Adam Tooze is warning that Trump's economic proposals are a "recipe" for inflation. And James Singer, a spokesman for Biden's campaign, told Axios, "What Trump and his allies are proposing will bring chaos to economic markets, raise costs on working families, and send inflation skyrocketing."

Read Axios' full report at this link.

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