{"id":2284069,"date":"2024-06-26T15:25:02","date_gmt":"2024-06-26T19:25:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/same-economists-who-said-biden-would-ease-inflation-say-trump-will-make-it-worse-washington-examiner\/"},"modified":"2024-06-26T15:30:27","modified_gmt":"2024-06-26T19:30:27","slug":"same-economists-who-said-biden-would-ease-inflation-say-trump-will-make-it-worse-washington-examiner","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/same-economists-who-said-biden-would-ease-inflation-say-trump-will-make-it-worse-washington-examiner\/","title":{"rendered":"Same economists who said Biden would ease inflation say Trump will make it worse &#8211; Washington Examiner"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">34<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fsame-economists-who-said-biden-would-ease-inflation-say-trump-will-make-it-worse-washington-examiner%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2284069&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>A group of 16 Nobel Prize-winning \u2062economists\u2062 issued a\u2062 caution about the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/white-house-more-focused-on-blaming-gop-for-shutdown-than-avoiding-one\/\" title=\"White House prioritizes blaming GOP over preventing shutdown.\">potential economic repercussions<\/a> if Donald Trump were to be re-elected. They\u2062 asserted that Trump&#8217;s \u2064economic strategies would be significantly inferior \u2064to President Joe\u200c Biden\u2019s and could reignite inflation, which according to \u200dthem has reduced substantially. Criticism towards Trump\u2019s\u2064 economic policies comes in light of some economists previously asserting that Biden\u2019s policies\u2014specifically citing\u200c the \u200d&#8217;Build Back Better&#8217; plan later named the Bipartisan Infrastructure Law (BIL)\u2014would curb inflation despite apparent increases under his administration.<\/p>\n<p>The letter mentioned that the BIL, with a new expenditure \u2063of about half a trillion dollars, was expected to \u2062ease future inflationary pressures even\u200d though inflation rates were about 5% at the time of endorsement. This expectation \u200ccame despite \u2062early \u200dcautions around the American Rescue Plan (ARP), also endorsed by economist Joseph Stiglitz,\u200c which predicted minimal risks \u200bof inflation at a \u2062time when inflation was merely 1.7%. However,\u200b post \u200cthe signing of\u200d ARP \u2062and later BIL, inflation surged, eventually \u200bnecessitating aggressive monetary\u200b tightening \u200dby the Federal Reserve\u200d to begin reversing \u2063inflationary trends.<\/p>\n<p>In sum, these Nobel laureates, many of whom \u200dhad previously supported\u2063 Biden\u2019s economic policies that seemed to exacerbate inflation initially,\u2062 warned that Trump\u2019s return might revert improvements made in controlling inflation, \u2062posing a fragile outlook for\u2063 Biden&#8217;s economic framework.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<div>\n<p>A group of 16 Nobel Prize-winning economists authored an open letter warning that if Donald Trump won a second presidential term, his economic agenda would not just be \u201cvastly\u201d inferior to that of President Joe Biden\u2019s but that Trump would also \u201creignite\u201d the <a href=\"https:\/\/www.washingtonexaminer.com\/opinion\/3029444\/why-voters-dont-care-about-much-else-other-than-inflation\/\" target=\"_blank\" rel=\"noopener\" title>inflation \u201cwhich has come down remarkably fast<\/a>.\u201d Of course, <a href=\"https:\/\/www.washingtonexaminer.com\/magazine-business\/3051665\/income-taxes-trumps-tariff-math-doesnt-add-up\/\" target=\"_blank\" rel=\"noopener\" title>a criticism of Trump\u2019s heterodox economic proposals<\/a> would mean a little more from a team of economists that did not previously lie that Biden\u2019s empirically abysmal policies would bring down inflation instead of <a href=\"https:\/\/www.washingtonexaminer.com\/opinion\/3031036\/mark-zandi-says-inflation-over-fourth-year-in-a-row\/\" target=\"_blank\" rel=\"noopener\" title>supercharging price instability to its worst crisis in 40 years<\/a>.<\/p>\n<p>You see, 14 of the 16 economists from the 2024 letter wrote another letter in September 2021 cheering on Biden\u2019s \u201cBuild Back Better\u201d agenda, which would later become the Bipartisan Infrastructure Law. Spearheaded by Joseph Stiglitz of Columbia, George Akerlof of Georgetown, Sir Angus Deaton of Princeton, Sir Oliver Hart of Harvard, Eric Maskin of Harvard, Daniel McFadden of Berkley, Paul Milgrom of Stanford, Roger Myerson of the University of Chicago, Edmund Phelps of Columbia, Paul Romer of NYU, William Sharpe of Stanford, Robert Shiller of Yale, Christopher Sims of Princeton, and Robert Solow of the Massachusetts Institute of Technology claimed that the BIL, which infused about half a trillion dollars of new spending into the economy, would \u201cease longer-term inflationary pressures\u201d despite inflation already running at 5%. Again, this September 2021 letter would be less embarrassing if Stiglitz hadn\u2019t already endorsed the preliminary portion of the BBB agenda, the American Rescue Plan.<\/p>\n<p>Rewind back to February 2021, when inflation was just 1.7%, Stiglitz called a refusal to pass the \u201c<a href=\"https:\/\/www.theguardian.com\/business\/2021\/feb\/01\/joe-bidens-recovery-package-tax-revenues-federal-government-states\" target=\"_blank\" rel=\"noopener\" title>urgently needed<\/a>\u201d $1.9 trillion ARP \u201c<a href=\"https:\/\/www.cnn.com\/2021\/02\/23\/perspectives\/stimulus-biden-covid-relief-joseph-stiglitz\/index.html\" target=\"_blank\" rel=\"noopener\" title>irresponsible and reckless<\/a>.\u201d<\/p>\n<p>\u201cOpponents of the Biden plan also disingenuously warn against inflation \u2014 that lurking bogeyman that is more fantasy than real threat nowadays,\u201d Stiglitz wrote in support of the ARP. \u201cIndeed, some data suggest that\u00a0wages may be falling<a href=\"https:\/\/www.brookings.edu\/bpea-articles\/covid-19-and-labor-markets\/\"> <\/a>in parts of the economy. But if inflation does emerge, the US has ample monetary and fiscal tools at the ready.\u201d<\/p>\n<p>Of course, after Stiglitz got his wish when Biden signed the ARP into law, the \u201cfantasy\u201d of inflation jumped from below the Federal Reserve\u2019s maximum target of 2% to 5% when Stiglitz and 15 other Nobel laureates pushed Biden to pass the next phase of BBB. Within the year after the BIL was signed into law, inflation almost doubled to the near double digits. Only after the Fed enacted its <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/business-titans-are-sounding-the-alarm-over-the-u-s-economy\/\" title=\"Business Titans Are Sounding the Alarm Over the U.S. Economy\">fastest monetary tightening<\/a> in four decades did inflation begin to slow.<\/p>\n<p>Even so, the Fed\u2019s unilateral war on inflation, which is not just being unassisted by the Biden administration but actively undermined, has slowed to a crawl. In the past year, the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/reports-bidens-policies-to-produce-massive-inflation\/\" title=\"Reports: Biden\u2019s policies to produce massive inflation\">annual inflation rate<\/a> has barely slipped from 4% to 3.3%, or a progress rate of 1.5% per month. And recall that as a result of Bidenomics and big spending, real average wages are down 5% since Biden took office, a laughable and predictable result of the bills Stiglitz said would spur wage growth.<\/p>\n<p>Economists at the Federal Reserve Bank of San Francisco explicitly <a href=\"https:\/\/www.vox.com\/23036340\/biden-american-rescue-plan-inflation\" target=\"_blank\" rel=\"noopener\" title=\"blamed\">blamed<\/a> \u201cfiscal support measures\u201d such as the ARP and BIL for increasing inflation about three percentage points higher than it would be by the end of 2021, while economists at the Federal Reserve Bank of Chicago upgraded the <a href=\"https:\/\/papers.ssrn.com\/sol3\/papers.cfm?abstract_id=4205158\" target=\"_blank\" rel=\"noopener\" title=\"estimate\">estimate<\/a> even higher, to about four points.<\/p>\n<p>The same economists who backed BBB from the start and doubled down even when the inflation it wrought became evident are now tripling down. After lying that Biden is responsible for \u201clowering long-term inflationary pressures,\u201d the Nobel signatories of the 2024 letter claim that Trump is worse than the alternative because he would worsen inflation.<\/p>\n<p>\u201cDonald Trump and the vagaries of his actions and policies threaten this stability and the U.S.\u2019s standing in the world,\u201d the signatories write. \u201cWe believe that a second Trump term would have a negative impact on the U.S.\u2019s economic standing in the world and a destabilizing effect on the U.S.\u2019s domestic economy.\u201d<\/p>\n<p><strong><a href=\"https:\/\/www.washingtonexaminer.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER<\/a><\/strong><\/p>\n<p>The letter does not even cite specific Trump policies, just his \u201cfiscally irresponsible budgets\u201d that historically had a deficit of <a href=\"https:\/\/www.washingtonexaminer.com\/opinion\/3059708\/even-covid-trump-spent-trillions-less-than-biden\/\" target=\"_blank\" rel=\"noopener\" title>a full trillion<\/a> fewer than Biden\u2019s today.<\/p>\n<p>Voters can find honest reasons to justify not voting for one guy or another, but a letter claiming Trump will stoke inflation while Biden is responsible for taming it just is not one of them.<\/p>\n<\/p><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sixteen Nobel laureates in economics cautioned that a second Trump presidency would significantly worsen economic outcomes compared to Biden&#8217;s policies. They highlighted concerns that Trump might exacerbate inflation, which has recently decreased notably<\/p>\n","protected":false},"author":2693,"featured_media":2284070,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/06\/biden-cheap-fake-age-defense.webp","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[3620,4934,3634],"class_list":["post-2284069","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner","tag-biden","tag-economists","tag-trump"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/06\/biden-cheap-fake-age-defense.webp","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2284069","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2693"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2284069"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2284069\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2284070"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2284069"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2284069"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2284069"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}