{"id":2289026,"date":"2024-07-04T01:33:00","date_gmt":"2024-07-04T05:33:00","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/economists-opposing-trumps-policies-is-a-ringing-endorsement\/"},"modified":"2024-07-04T01:41:59","modified_gmt":"2024-07-04T05:41:59","slug":"economists-opposing-trumps-policies-is-a-ringing-endorsement","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/economists-opposing-trumps-policies-is-a-ringing-endorsement\/","title":{"rendered":"Economists Opposing Trump&#8217;s Policies Is A Ringing Endorsement"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/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%2Feconomists-opposing-trumps-policies-is-a-ringing-endorsement%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=2289026&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>The summary \u200ddiscusses a letter issued by 16 Nobel \u200deconomists,\u200b led by Joseph Stiglitz, warning against a potential second term for President Trump. The economists criticize Trump&#8217;s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/new-york-city-business-leaders-ask-officials-not-to-raise-taxes-as-city-recovers-from-pandemic\/\" title=\"New York City Business Leaders Ask Officials Not To Raise Taxes As City Recovers From Pandemic\">budget plans<\/a>\u2062 and foreign relations policies, expressing concerns about their impact on the US economy. The summary also highlights past instances\u2063 where Nobel laureates have misjudged political and economic situations, such as opposing balanced budget proposals and criticizing \u200dprotectionist measures. The economists&#8217; warning in the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/what-does-the-data-tell-us-about-the-disproportional-impact-of-covid-19-lockdowns-on-women\/\" title=\"What Does The Data Tell Us About The Disproportional Impact Of COVID-19 Lockdowns On Women?\">current context<\/a> of high federal debt \u200band Chinese economic practices \u200bis questioned, especially given Trump&#8217;s track record \u2062on economic issues.  <\/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>In late June, 16 Nobel economists led by former World Bank Chief Economist Joseph Stiglitz issued a <a href=\"https:\/\/www.axios.com\/2024\/06\/25\/nobel-prize-winners-biden-economy-trump-inflation\" target=\"_blank\" rel=\"noreferrer noopener\">letter<\/a> warning that a second Trump term would have \u201ca negative impact on America\u2019s economic standing in the world and a destabilizing effect on the U.S. domestic economy.\u201d Among the gripes: Trump\u2019s \u201cfiscally irresponsible\u201d budget plans and the \u201cvagaries of his actions and policies\u201d in relations with other countries.<\/p>\n<p>If the past is anything to go by, this is probably the most powerful endorsement of the Trump presidency yet.<\/p>\n<p>The letter writers are not socialists. Like all good economists, they know that free trade, free markets, sound money, and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/gop-leaders-to-meet-with-trump-on-agenda\/\" title=\"GOP Leaders to Meet With Trump on Agenda\">balanced budgets<\/a> are generally a good idea. They also know, as good economists do, that politicians need to get involved now and again to keep the Good Ship Capitalism afloat.<\/p>\n<p>That\u2019s where things get tricky. Economists are out of their depth in thinking about the complex interaction of politics and economics. As a result, they tend to fall back on a simple rule of thumb: trust the government when it is run by center-left technocrats like themselves. If populists are involved, they stand in opposition even if the results would be good. They fail to see that populists of the right are often better stewards of the economy than center-left technocrats or populists of the left.<\/p>\n<p>If the laureates had a better grasp of the difference between academic theory and policy practice, they would not have issued their silly letter. As an International Monetary Fund official noted in a sharp <a href=\"https:\/\/www.imf.org\/en\/News\/Articles\/2015\/09\/28\/04\/53\/sp061302\">riposte<\/a> to Stiglitz\u2019s left-populist book <em>Globalization and its Discontents<\/em> of 2002: \u201cStiglitz evidently feels that being a top-notch academic economist is ample qualification for being a good policymaker. The fact is that Joe got a late start in policymaking and shows it.\u201d<\/p>\n<p>This is not the first time Nobel economists have miscalculated by dabbling in politics. Back in 1997, during the heyday of the Clinton-Gore technocracy, a feisty Congress led by Republican party populists grew alarmed by the federal debt, which had doubled to 63 percent of GDP from a post-war low of 31 percent in 1981. A coterie of more than 1,000 economists, including 11 Nobel laureates, rushed out a joint <a href=\"https:\/\/www.cbpp.org\/research\/constitutional-balanced-budget-amendment-poses-serious-risks\" target=\"_blank\" rel=\"noreferrer noopener\">statement<\/a> calling a balanced budget proposal \u201cunsound and unnecessary.\u201d In retrospect, the economists opposed what might have been the last chance to save the American economy from its current fiscal crisis.<\/p>\n<p>Similarly back in 1986, when President Reagan was using his populist skills to force Japan to reduce protectionist barriers, a group of 12 Nobel laureates called on the president to \u201cresist the pressures for protectionist measures.\u201d <\/p>\n<p>Reagan was an avid free trader, but he also understood the politics of lowering trade barriers better than the economists. His negotiated \u201cvoluntary export restraints\u201d with Japan and other countries covered 18 percent of total U.S. imports by 1989. This muscular use of selective protectionism gave him political cover to launch a new round of global trade liberalization that led to the creation of the World Trade Organization. In retrospect, the economists should have stuck to what they knew best.<\/p>\n<p>This week\u2019s letter comes against a backdrop of the same two issues, now looming like Godzilla over American prosperity. The federal debt is now 123 percent of GDP <a href=\"https:\/\/www.imf.org\/en\/publications\/weo\">according<\/a> to the International Monetary Fund, while China\u2019s looting of the American economy through dumping, theft, and domestic barriers to American companies makes the Japan of yore look positively angelic. Warning that Trump will cause inflation, deficits, and threats to American prosperity after a president who has broken historical barriers on all three measures does not pass the laugh test.<\/p>\n<p>In 2021, nearly the same group, including Stiglitz, issued another <a href=\"https:\/\/www.epi.org\/open-letter-from-nobel-laureates-in-support-of-economic-recovery-agenda\/\" target=\"_blank\" rel=\"noreferrer noopener\">open letter<\/a> promising that Biden\u2019s spending blowout would reduce inflation. As The Federalist\u2019s David Harsanyi <a href=\"https:\/\/thefederalist.com\/2022\/08\/04\/these-economists-say-whatever-democrats-want-them-to-say\/\" target=\"_blank\" rel=\"noreferrer noopener\">noted<\/a> at the time, this was part of a broader pattern of left-leaning economists supporting each and every Democratic Party spending blow-out as a boon to the economy, while issuing dark warnings about Republican policies to cut taxes.<\/p>\n<p>The time seems ripe for some muscular restructuring of the American economy with reduced taxes, more investment, and a return to Reaganite big sticks on trade.\u00a0Unless of course that intervention is led by a crude populist of the right like Trump who would never be invited to the faculty lounge. Stiglitz has called Trump a con man and a fascist among other epithets.<\/p>\n<p>It\u2019s worth noting that economists also sounded the alarm about populists of the right like Argentina\u2019s current libertarian populist president Javier Milei and former populist Conservative Prime Minister Liz Truss of Britain. The U.K. is about to find out how much it wished Truss had survived her battle with the markets, while Milei\u2019s tough medicine is expected by the <a href=\"https:\/\/www.imf.org\/en\/publications\/weo\" target=\"_blank\" rel=\"noreferrer noopener\">IMF<\/a> to cut Argentina\u2019s inflation from 250 percent this year to 60 percent next year, paving the way for 5 percent real growth.<\/p>\n<p>About the best thing that Trump can say in favor of his economic policies is that they are opposed by a group of Nobel economists.<\/p>\n<hr>\n<p>      Bruce Gilley is a professor of political science at Portland State University and president of the Oregon Association of Scholars, the Oregon chapter of the National Association of Scholars.<\/p>\n<\/p><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A group of 16 Nobel economists, led by Joseph Stiglitz, warned in a letter that a second term for Trump would have negative economic consequences for the US. They criticized Trump&#8217;s budget plans and his actions in international relations. The economists, who are not socialists, believe in free trade and balanced budgets, but they tend to trust center-left technocrats over populists. However, history has shown that populists of the right can be effective stewards of the economy. Past instances of Nobel economists intervening in politics have not always been successful, as seen in their opposition to balanced budget proposals in the past. The economists also criticized Reagan&#8217;s trade policies, which ultimately led to the creation of the World Trade Organization. The current federal debt and China&#8217;s economic practices are major concerns for the US economy. The economists have also supported Democratic spending policies while criticizing Republican tax cuts. The author suggests that a restructuring of the American economy with reduced taxes and a return to Reaganite trade policies may be necessary, even if led by a populist like Trump. The economists have also raised concerns about right-wing populists in other countries, but their policies have sometimes led to positive economic outcomes. Overall, the fact that Trump&#8217;s economic policies are opposed by Nobel economists may actually be a point in his favor<\/p>\n","protected":false},"author":1341,"featured_media":2289027,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2024\/07\/49461461556_9b950966e9_h.jpeg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[4934,13348,3760,4600,3634],"class_list":["post-2289026","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-economists","tag-endorsement","tag-opposition","tag-policies","tag-trump"],"fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2024\/07\/49461461556_9b950966e9_h.jpeg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2289026","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\/1341"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2289026"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2289026\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2289027"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2289026"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2289026"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2289026"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}