Summary
Nobel laureate economist Joseph Stiglitz warned that Trump’s policies risk causing stagflation—high inflation, rising unemployment, and slow growth—by cutting public spending and imposing tariffs.
In an interview with The Guardian, he said these measures make the U.S. a risky place to invest, as tariffs on imports from Canada, Mexico, and China are expected to raise prices and hurt the global economy.
Economists like Paul Krugman share his concerns. Many Trump voters will be “brutally scammed,” he warned.
No dis on Stiglitz, but it really doesn’t take a well educated economist to see reasons why Trumps policies will cause disaster. I mean for one thing, it’s an intentional result. The more destruction he causes, the more he and his friends can buy up in the fire sale.
I mean look at the biggest billionaires in the US, they’re all sitting on mountains of cash because they can’t figure out what to buy. Destroying the economy, makes it a buyers market for billionaires. Problem solved as far as they’re concerned.
One caveat is that billionaires don’t just have 10+ figure checking accounts. The majority of their networth is in unrealized gains and real-estate.
The biggest issue is that they are allowed to take out loans against those non-liquid assets, but if they were to try to liquidate everything to get that 10 figure checking account, they’d only get a fraction of it.
Normally that’s true, but tech companies and investment firms that are completely controlled by billionaires, are holding stupid amounts of liquid assets right now. They literally can’t find enough to buy, so it’s just piling up in various liquid assets.