'Trump would reignite inflation'—16 Nobel prize economists sound the alarm on Trump's presidency
16 Nobel Prize-winning economists have joined forces to voice a blistering critique of Donald Trump's economic plans, warning that his policies could fuel inflation if he wins the election.
In a forceful letter, first obtained by Axios, the economists lay out their case, arguing that Trump's plans would "have a negative impact on the U.S.'s economic standing in the world, and a destabilizing effect on the U.S.'s domestic economy."
They specifically point to Trump's proposals for steep new tariffs and what they call "fiscally irresponsible budgets" that could ‘reignite inflation.’
“While each of us has different views on the particulars of various economic policies, we all agree that Joe Biden's economic agenda is vastly superior to Donald Trump," the economists write.
The letter was orchestrated by Joseph Stiglitz, a Nobel laureate renowned for his work on income inequality, and co-signed by 15 other economics Nobelists, including luminaries like Paul Krugman and Robert Shiller.
The group spans a wide range of economic expertise and political stripes, making their unanimous warning about Trump's agenda all the more striking.
Battle lines drawn over the economy in 2024 race
The Nobel laureates' warning comes as the 2024 campaign heats up, with the economy taking center stage.
After months of playing defense on inflation, the White House sees the letter as a chance to scrutinize Trump's record and proposals, including new tariffs and the potential renewal of Trump’s signature tax cuts.
Biden's team aims to frame the election as a choice between divergent economic visions.
“Top economists, Nobel Prize winners, and business leaders all know America can’t afford Trump’s dangerous economic agenda,” Biden spokesperson James Singer said in a statement. “In Donald Trump’s America, the rich pay less, and working Americans pay more.”
Trump's team, meanwhile, dismissed the Nobel winners as “worthless out of touch” and argued that the former president's record on the economy is unmatched.
"President Trump built the strongest economy in American history," national press secretary Karoline Leavitt told Newsweek. "In just three years, Joe Biden's out-of-control spending created the worst inflation crisis in generations."
"Americans know we cannot afford four more years of Bidenomics," she added.
Nobel winners aren’t alone
The Nobel laureates' warning echoes concerns raised by other prominent economists about the potential fallout from Trump's signature proposals.
Former Treasury Secretary Larry Summers recently criticized Trump's plan to replace income tax revenues with tariffs, predicting it would raise consumer prices and cause economic stagnation.
"This would be a prescription for worldwide economic warfare," Summers said in an appearance on Bloomberg.
Treasury Secretary Janet Yellen seconds Summers's views and has also cautioned that another round of Trump tariffs would hit Americans the hardest by making everyday goods more expensive.
Yellen's comments underscore the high stakes of the economic debate heading into 2024, with voters already on edge about persistently high prices.