Economists Warn of Stagflation with Trump's Policies

A survey of economists suggests that former President Donald Trump's proposed economic policies, including broad tariffs and tax cuts, could lead to higher inflation, fewer manufacturing jobs, and an increased budget deficit. Economist Nouriel Roubini, known for his accurate predictions of the 2008 financial crisis, warns that Trump's policies could result in stagflation—a combination of high inflation and stagnant growth—due to factors like aggressive tariffs, a weaker dollar, and restrictive immigration policies. In contrast, the current economic outlook under President Biden shows stability, with a rise in nonfarm payrolls, a decrease in unemployment, and controlled inflation close to the Federal Reserve's target. Roubini argues that Kamala Harris's economic policies pose less risk of stagflation compared to Trump's, emphasizing that a return to Trump's policies could replicate the adverse conditions of the 1970s. Trump's proposed tariffs would likely increase costs for consumers and potentially provoke retaliatory measures from trading partners. Additionally, his approach to currency and immigration could hinder economic growth and further exacerbate inflationary pressures.