16 Nobel Economists Say "Trump's Second Term Will Rekindle US Inflation"

Joint Letter from Nobel Economics Laureates Including Stiglitz
Criticism of Trump Economic Policy as "Fiscally Irresponsible"
Analysis Suggests Political Motive Ahead of US Presidential Debate

Nobel laureates in economics have warned that former President Donald Trump's return to power could reignite inflation and worsen the U.S. economy, major foreign media outlets including Axios reported on the 25th (local time).

According to the report, 16 Nobel laureates in economics, including Joseph Stiglitz, stated in a joint letter that "while we have differing views on the details of various economic policies, we all agree that President Joe Biden's economic agenda is far superior to that of former President Trump," and "we believe a second Trump administration would negatively impact both the United States' global standing and its domestic economy."

[Image source=AFP Yonhap News]

They particularly pointed out that Trump's tariffs on China and his "fiscally irresponsible budget" would raise U.S. retail prices and trigger inflation again. Former President Trump has pledged to impose universal tariffs on all imports, including setting tariffs on China at 60-100%, permanently extend tax cuts enacted during his term, and pressure the Federal Reserve (Fed) to lower interest rates.

The economists reinforced their claims in the letter by citing nonpartisan research institutions such as Evercore, Allianz, Oxford Economics, and the Peterson Institute. The Peterson Institute for International Economics (PIIE), classified as bipartisan, previously analyzed that Trump's plan to impose a comprehensive 10% tariff on all imports could act as an inflation tax, adding about $1,700 annually to American household expenses.

CNBC noted that the joint letter from the Nobel laureates came just days before the U.S. presidential debate. The letter is seen as containing not only economic analysis but also political elements. Joseph Stiglitz, former World Bank Vice President and known to have led the gathering of the laureates' opinions, explained in an interview with CNBC that "many people think former President Trump would be better for the economy than President Biden," and "it was important to let Americans know that the views of a reliable group of economists differ greatly from this."

James Singer, a spokesperson for the Biden campaign, criticized, "Top economists, Nobel laureates, and business leaders all know that the U.S. cannot handle former President Trump's dangerous economic agenda," adding, "Under the Trump administration, the rich pay less while working Americans pay more." Caroline Leavitt, a spokesperson for the Trump campaign, countered, "The American people know which president has filled their pockets without useless Nobel laureates," and said, "Former President Trump plans to lower living costs and implement growth-, energy-, and job-friendly agendas to improve Americans' quality of life."

Meanwhile, the first TV debate between President Biden and former President Trump will be held on the 27th at 9 p.m. Eastern Time, hosted by CNN, lasting 90 minutes. The two candidates will be allowed to bring only a pen, a blank notepad, and a bottle of water into the debate hall, with limited contact with their aides. It is expected to be a major test of the cognitive abilities of the two candidates, both of whom face risks related to advanced age.