Summary
Nobel laureate economist Joseph Stiglitz warned that Trump’s policies risk causing stagflation—high inflation, rising unemployment, and slow growth—by cutting public spending and imposing tariffs.
In an interview with The Guardian, he said these measures make the U.S. a risky place to invest, as tariffs on imports from Canada, Mexico, and China are expected to raise prices and hurt the global economy.
Economists like Paul Krugman share his concerns. Many Trump voters will be “brutally scammed,” he warned.
An important point not mentioned here, they might not. Things might not collapse. Smaller institutions, court victories, and good ol’ American ingenuity might stave off the worst of the crisis, and things may not be entirely bad.
This should NOT be construed as validation for Trump’s path of destruction. It doesn’t mean he isn’t as bad as the Nobel laureates have claimed.
Yup. The market can stay irrational longer than you can stay solvent, or however that saying goes.