Sixteen Nobel laureates in economics warn in an open letter that Donald Trump's second term will be associated with a resurgence of inflation and long-term damage to the US economy. Economists estimate that Joe Biden's economic program is much better.
Nobel laureates expressed concern that Donald Trump's second term could negatively affect the US economic situation and destabilize it. In the released letter, they write that such a scenario would likely increase inflation due to Donald Trump's fiscally irresponsible budgets. The document was created at the initiative of Joseph Stiglitz, former chief economist of the World Bank and 2001 Nobel Prize laureate.
According to the Nobel laureates, many Americans are concerned about inflation, which, while falling at a rapid pace, could rise again under Trump. They also said that despite the differences in the assessment of the current president's economic policies, his program is much better than Donald Trump's plans.
The letter highlighted several of Trump's questionable proposals, including tax plans that would extend or increase tax breaks from his first term that favored the wealthiest. These actions could add more than $4 trillion to the U.S. debt. Donald Trump has even proposed to completely abolish the income tax and replace it with tariffs on imported products, which experts say is unrealistic.
Trump's other controversial proposals, according to the Nobel laureates, include imposing blanket tariffs on all imports and 60 percent tariffs on products from China. By comparison, Biden's program proposes, among other things, to introduce a minimum tax of 20 percent on assets worth more than $100 million, increase the corporate tax rate from 21 to 28 percent, and raise the tax credit for each child to $3,000 to $3,600.
Despite slowing price growth, solid economic growth, low unemployment and wage growth, most Americans have a negative view of the state of the economy, blaming Biden for inflation.
