Nobel Prize-winning economist Joseph Stiglitz flagged major economic concerns under President Trump, claiming that fluctuating policies put the nation at risk of stags.
“It puts all the possible worst in the world at stake: a kind of stag,” said Stiglitz, who chaired former President Clinton's Economic Adviser Council. Guardian.
He said changing tariffs would cause businesses to set up stores in an uncertain future and question the location of the factory's foundation.
“If you are a US or European company, do you think you have a global market, or do you have only the European market? Where is the factory located?” he asked.
Stiglitz said the unexpected abandonment of government contracts and trade agreements has made the United States “a scary place to invest.” US-Mexico-CanadaEconomic Transaction He was mediated by Trump in his first administration.
Within the first month of his inauguration, the president approved 25% tariffs in Canada and Mexico, but later delayed implementation following the country's willingness to implement the proposed border security strategy.
He also approved a proposed mutual tariff study on countries that he claims to have imposed unfair policies on the United States.
Stiglitz and others, including former Treasury Secretary Larry Summers, said the commander was making the wrong move.
“Almost all economists agree that tariffs will raise prices. How much price increases will be influenced slightly by the magnitude of the exchange rate valuation, but all economists will be able to valuate the exchange rate. The extent of the tax is not sufficiently located to compensate for the tariffs, Stiglitz told the Guardian.
“We certainly could see a scenario where we reach stagflation — we can get inflation and a weak economy. The global economy is very struggling due to the uncertainty that Trump brings. I can't really see a robust economy because I see it being there.”
Despite criticism, Trump said short-term pain is worth the benefit of a restructured trade policy.
“This will be America's golden age!” Trump wrote about the true society. “Is there any pain? Yes, maybe (and maybe not!). But we're going to make America great again, and it's all worth the price we have to pay. We're the norm now. It's a country operated by. The results will be spectacular!!!”
