Trumponomics Gets The Thumbs Down From Nobel-Winning Economists# Stock
W*n
1 楼
Trumponomics Gets The Thumbs Down From Nobel-Winning Economists
by Rich Miller
January 6, 2017, 4:17 PM CST
Stiglitz cites ‘broad consensus’ Trump policies won’t work
Columbia University’s Phelps sees risk of a deep recession
President-elect Donald Trump Photographer: Don Emmert/AFP via Getty Images
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.
Such disapproval though is likely to fall on deaf ears. Trump rode to
victory on the back of an unconventional campaign that was short on advice
from Ph.D. economists -- relying more on a team of wealthy businessmen --
and there’s no indication that’s about to change. He pledges to accelerate
growth and create millions of well-paid jobs through spending hikes and tax
cuts as well as reduced regulations and renegotiated trade deals.
Discouraging Newcomers
Phelps was particularly critical of Trump’s singling out of individual
companies for abuse and praise, saying such interference could end up
discouraging newcomers from entering markets and bringing with them much-
needed innovation.
“The Trump government is threatening to drive a silver spike into the heart
of the innovation process,” he said.
Phelps also voiced concern about Trump’s plans for big tax cuts and
spending increases. “Such a policy runs the risk it could lead to an
explosion of public debt and ultimately cause a serious loss of confidence
and a deep recession,” he said.
That also has the University of Chicago’s Roger Myerson worried. While
other presidents have run big budget deficits in the past, they depended on
foreign purchases of U.S. debt to do so.
‘Confidence and Trust’
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, Myerson said.
America’s interaction with other countries “has to be based on confidence
and trust,” Stiglitz said. “That’s being eroded.”
Angus Deaton of Princeton University said he was less worried about the U.S.
economy under Trump than he was about international relations, particularly
when it comes to China.
The Asian nation was facing difficult economic problems and sounding more
bellicose in the region even before Trump won the presidency on a vow to
take it on, Deaton said.
Yale’s Shiller was the only Nobel Prize winner on the panel discussion who
didn’t take a shot at Trump. “I’m a natural optimist and I would not like
to speculate on how bad it could get,” he said. “Maybe one of the other
panelists wants to do that.”
They certainly did.
by Rich Miller
January 6, 2017, 4:17 PM CST
Stiglitz cites ‘broad consensus’ Trump policies won’t work
Columbia University’s Phelps sees risk of a deep recession
President-elect Donald Trump Photographer: Don Emmert/AFP via Getty Images
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.
Such disapproval though is likely to fall on deaf ears. Trump rode to
victory on the back of an unconventional campaign that was short on advice
from Ph.D. economists -- relying more on a team of wealthy businessmen --
and there’s no indication that’s about to change. He pledges to accelerate
growth and create millions of well-paid jobs through spending hikes and tax
cuts as well as reduced regulations and renegotiated trade deals.
Discouraging Newcomers
Phelps was particularly critical of Trump’s singling out of individual
companies for abuse and praise, saying such interference could end up
discouraging newcomers from entering markets and bringing with them much-
needed innovation.
“The Trump government is threatening to drive a silver spike into the heart
of the innovation process,” he said.
Phelps also voiced concern about Trump’s plans for big tax cuts and
spending increases. “Such a policy runs the risk it could lead to an
explosion of public debt and ultimately cause a serious loss of confidence
and a deep recession,” he said.
That also has the University of Chicago’s Roger Myerson worried. While
other presidents have run big budget deficits in the past, they depended on
foreign purchases of U.S. debt to do so.
‘Confidence and Trust’
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, Myerson said.
America’s interaction with other countries “has to be based on confidence
and trust,” Stiglitz said. “That’s being eroded.”
Angus Deaton of Princeton University said he was less worried about the U.S.
economy under Trump than he was about international relations, particularly
when it comes to China.
The Asian nation was facing difficult economic problems and sounding more
bellicose in the region even before Trump won the presidency on a vow to
take it on, Deaton said.
Yale’s Shiller was the only Nobel Prize winner on the panel discussion who
didn’t take a shot at Trump. “I’m a natural optimist and I would not like
to speculate on how bad it could get,” he said. “Maybe one of the other
panelists wants to do that.”
They certainly did.
