Nobel laureates have warned that the US and global economy will deteriorate under Trump

A dozen former Nobel Prize winners in economics have signed an open letter warning former President Donald Trump that his policies as president could lead to a global inflationary crisis if he wins the presidency this fall.

Commodity prices rose significantly following the end of pandemic lockdowns, jumpstarting the economy and increasing demand for goods. Although inflation has since subsided, many Americans are still struggling to make ends meet.

The issue has affected President Joe Biden in the election — but 16 Nobel laureates believe the economy will be much worse in the next four years under a Trump presidency. According to the report from Axios.

„While we each have different opinions on the details of various economic policies, we all agree that Joe Biden’s economic agenda is far superior to Donald Trump’s.” A letter from Nobel laureates saysAdd:

We believe that Trump’s second term will have a negative impact on America’s economic standing in the world and will cause disruption in the US domestic economy.

„Many Americans are worried about inflation,” the letter writers acknowledged, but „the concern that Donald Trump will reignite this inflation with his fiscally reckless budgets is valid.”

The correspondence was organized by Joseph Stiglitz, who won the Nobel Prize in Economics in 2001. Other winners who signed the letter include: George A. Akerlof (2001), Angus Deaton (2015), Claudia Goldin (2023), Oliver Hart (2016), Eric S. Maskin (2007), Daniel L. McFadden (2000), Paul R. Milgrom (2020), Roger B. Myerson (2007), Edmund S. Phelps (2006), Paul M. Romer (2018), Alvin E. Roth (2012), William F. Sharp (1990), Robert J. Schiller (2013), Christopher A. Sims (2011), and Robert B. Wilson (2020).

The issue of the economy — especially rising consumer prices — will undoubtedly feature prominently in the next few months of the presidential campaign, and will likely be discussed during a debate between Biden and Trump this weekend.

According to the latest Economist/YouGov pollBiden gets poor marks on the economy from voters, with just 38 percent approving of his job performance on the issue and 54 percent giving him a negative rating.

However, there are signs — of late — that Biden’s ratings on the issue are improving slightly Fox News For example, the poll found the proportion of voters who say they are „getting ahead” or „stable” financially. 5 points higher than last year. Even if Biden’s approval rating is still low on the economy, the increase in the polls will be significant and as close as it gets.

Notably, the last two years of inflation in the U.S. were due to „greed”—companies and their CEOs raising the prices of goods in order to obtain higher profits or salaries than any policy or other economic force. affect prices.

In fact, according to a report by the AFL-CIO in the summer of 2022, when commodity prices skyrocket due to inflation, CEOs saw an 18.2 percent pay increase from the previous year. (By comparison, workers only saw a 4.7 percent wage increase). Another report by Groundwork Collaborative, published in January of this year, found that inflationary increases of 53 cents in every dollar in the last two quarters of 2023 were driven by companies trying to boost profits.

While there is some inflation, „companies are quick to pass on their increased costs to consumers,” said Liz Pancotti, co-author of the report, while costs fall, „and they pass on their savings to consumers at a surprisingly slow pace.”