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By Marni Rose McFall
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The Trump campaign has hit back at a group of Nobel Prize winning economists who issued a warning about the "risks" to the U.S. economy of a second term for former President Donald Trump.
Trump campaign national press secretary Karoline Leavitt told Newsweek that the American people don't need "worthless out of touch" economists telling them which president "put more money in their pockets," after 16 Nobel Prize winners said in a letter that "Joe Biden's economic agenda is vastly superior to Donald Trump's." It comes less than five months before the presidential election, with Trump narrowly ahead in most polling averages.
In the letter, first obtained by Axios, the economists expressed concern that a second Trump term could "reignite" inflation, "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."
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Professor Joseph E. Stiglitz, a signatory and Professor at Colombia University who received the Nobel Memorial Prize in Economic Sciences in 2001, told Newsweek that "There is likely to be much poorer economic performance over the short term and the long term under Trump."
He said that in the short term inflation will be higher because of Trump's "protectionist tariff policies, marked reductions in immigration, likely large budget deficit, abandoning Biden's attacks against monopolies, and repeal of critical elements of the Inflation Reduction Act."
Stiglitz also argued that, "in the long run, the undermining of the rule of the law, attacks on our universities, and cutbacks in the funding of science will undermine growth."
Leavitt responded, "President Trump built the strongest economy in American history. 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."
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Leavitt also told Newsweek that "when President Trump is back in the White House, he will reimplement his pro-growth, pro-energy, pro-jobs agenda to bring down the cost of living and uplift all Americans."
Trump's economic policies include a promise to lower corporate America's tax rate from 21 percent to 20 percent. Trump has also said he wants to eliminate taxes on tips for workers in the hospitality and leisure industries.
His economic plan also pledges to impose 10 percent duties on all imports and a minimum tariff of 60 percent on Chinese goods.
James Singer, a spokesperson for the Biden campaign, told Newsweek: "Top economists, Nobel Prize winners, and business leaders all know America can't afford Trump's dangerous economic agenda."
"In Donald Trump's America, the rich pay less, and working Americans pay more. Luckily, Americans have a better choice this November: Joe Biden, who is leading America out of the mess Donald Trump left us in and fighting to lower costs, create jobs, and raise wages."
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Democrats have been on the defensive with the economy since prices surged in the summer of 2022. The White House maintains that the economy is good, but voters don't seem to agree.
A poll for the Guardian newspaper in the U.K. in May found that more than half of Americans wrongly believed the U.S. was in a recession.
Fox News recently reported that 68 percent of American say the economy is "not so good" or "poor."
Inflation has fallen in recent months after hitting a 40-year high of 9.1 percent in June 2022. In May, the annual rate fell to 3.3 percent, which is a decrease from April, but above the target of 2 per cent set by the Federal Reserve.
Key aspects of Biden's economic agenda include investing nearly $53 billion in semiconductor manufacturing to reduce dependence on foreign sources and enhance national security, and the Bipartisan Infrastructure Law, which is aimed at modernizing the nation's roads, bridges, public transport systems, and broadband availability.
Biden has pledged to raise corporation tax and has said that households who make less than $400,000 a year wouldn't see a tax increase.
The 16 Nobel Prize winning economists said in their letter that Biden's plans would likely "increase productivity and economic growth while lowering long-term inflationary pressures and facilitating the clean energy transition."
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