USA Nobel Prize winners warn against Trump's re-election

Sixteen Nobel laureates in economics have warned in a joint letter of the risks of a second Donald Trump presidency for the US economy. The most important factors for economic success include the rule of law as well as economic and political security. Compliance with international norms and normal and stable relations with other countries are also a must. "Donald Trump and the unpredictability of his actions and policies threaten this stability and the position of the United States in the world," reads the letter published by US media on Tuesday.

Even if each of the signatories has different views on individual economic policy measures, the letter continues, they all agree that US President Joe Biden's economic program is far superior to that of Trump. Biden has decided to make important investments in the US economy, including in infrastructure, domestic production and climate protection.

"Taken together, these investments are likely to increase productivity and economic growth while reducing long-term inflationary pressures and facilitating the transition to clean energy." Another four years of Biden's presidency would allow him to further advance a comprehensive economic recovery in the US.

Many Americans are concerned about inflation, which has fallen remarkably quickly. There is rightly concern that Trump "with his fiscally irresponsible budget plans" will fuel inflation again.

The outcome of the election in November will have economic repercussions for years, possibly decades. "We believe that a second Trump term would have a negative impact on the US economic standing in the world and a destabilizing effect on the US domestic economy."

Trump and Biden are in the hot phase of the election campaign. Inflation plays a major role for many voters. The rate of inflation has fallen significantly since the summer of 2022. But this means that the high prices are now continuing to rise moderately. Biden is only responsible for high consumer prices to a very limited extent and things are also looking good on the labor market. But when people can afford less and less for their money, they usually blame the current president.

Among the signatories of the letter are Joseph E. Stiglitz, who was awarded the Nobel Prize for Economics in 2001, as well as Paul R. Milgrom, Robert J. Shiller and Paul M. Romer.