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.
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.