PNN – Joseph Stiglitz, a contemporary American economist and winner of the Nobel Prize, warned: Donald Trump’s policies will make America a scary place to invest, and the uncertainty caused by tariffs and contempt for the rule of law will prevent investment in this country.
According to the report of Pakistan News Network, in an interview with the Guardian newspaper, Stiglitz said that Trump’s tariff threat may soon lead to inflationary stagnation.
This American economist argued that despite the optimism regarding the prosperity of the American economy at the beginning of this year, the uncertainty created by Trump’s plans to apply tariffs and his attempt to ignore the rule of law hinders investment in this country.
He pointed to Trump’s adviser Elon Musk’s plan to shrink government departments without congressional authorization and Trump’s disregard for trade agreements, including with Canada and Mexico, during his first term as president, and described them as destructive signs for investors to pay attention to America as an investment destination.
Stiglitz said: The US government has a lot of contracts and we just tear them up. How much risk do you want? I can say, America has become a scary place to invest.
The economist said uncertainty would slow economic growth, while Trump’s retaliatory tariffs would boost inflation.
The Columbia University professor and former World Bank economist who now serves as chairman of Bill Clinton’s Council of Economic Advisers noted that the Fed is “clearly concerned” about the inflationary effects of Trump’s policies, which could lead to higher interest rates.
This university professor added: I can confidently see a scenario where we are suffering from inflationary stagnation, inflation and economic weakness. I can’t really predict a strong economy because the world economy is plagued by doubts caused by Trump.