❝ A pack of Nobel Prize-winning economists gave Donald Trump and his policy plans the thumbs-down on Friday, with one saying the president-elect’s programs could lead to a deep recession.
Speaking on a panel during the first day of the annual American Economic Association meeting in Chicago, the Nobel laureates voiced a variety of concerns about the billionaire developer’s stance, from his haranguing of U.S. companies about their outsourcing plans to the risk that his tax and spending proposals could lead to run-away budget deficits.
“There is a broad consensus that the kind of policies that our president-elect has proposed are among the polices that will not work,” said Joseph Stiglitz, summing up the views of the panel that included his fellow Columbia University professor Edmund Phelps and Yale University’s Robert Shiller…
❝ …While other presidents have run big budget deficits in the past, they depended on foreign purchases of U.S. debt to do so.
With Trump threatening to renegotiate U.S. trade agreements and shift to an “America First” policy, the willingness of foreigners to keep buying U.S. government securities can’t be taken for granted, University of Chicago’s Roger Myerson said.
America’s interaction with other countries “has to be based on confidence and trust,” Stiglitz said.
The world view of the United States – right now – wavers between contemptuous laughter and risk-based angst. In my mind, quite justifiably.