Nobel laureate economist Joseph Stiglitz called out President Donald Trump’s economic policies, warning they risk causing stagflation — otherwise known as high inflation, rising unemployment and stagnant economic growth.
In an interview published by The Guardian on Monday, Stiglitz also argued the United States is becoming “a scary place to invest” because of Trump’s mission to slash public spending, which is shredding established contracts with the government and prompting fears of the risks of doing business in America.
Trump earlier this month announced a 25% tariff on imports from Canada and Mexico and 10% on those from China. The tariffs on Canada and Mexico were almost immediately paused but could still be reimposed in March. Last week, Trump unveiled reciprocal tariffs on other countries globally, with each nation’s levy to be decided on an individual basis.
“Almost all economists agree that the tariffs will increase prices,” said Stiglitz, a professor at Columbia University and former World Bank chief economist who won the Nobel Memorial Prize in Economic Sciences in 2001.
“I could certainly see a scenario where we get to stagflation –- we get inflation, and a weak economy,” he added. “I cannot see a really robust economy, because I just see the global economy suffering so much from the uncertainty that Trump poses.”
Paul Krugman, the winner of the 2008 Nobel Memorial Prize, expressed similar fears over Trump’s plan “to raise tariffs but cut taxes on high income” last month.
A “lot of people” who voted for Trump last year “are going to get brutally scammed,” he warned.
Last week, the annual inflation rate was reported to have risen by 3% in the three months since Trump’s election win over Democratic rival Kamala Harris.
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Trump repeatedly during his 2024 campaign promised that he would bring down prices on the first day of his administration.