US economy would be a big loser if Donald Trump wins the presidential election and imposes new tariffs on imports from China, according to Joseph Stiglitz.
The US economy would be a big loser if Donald Trump wins the presidential election and imposes new tariffs on imports from China, according to Nobel laureate Joseph Stiglitz. In an interview with Bloomberg News he said that Trump gets a lot of things wrong when it comes to his economic policy, particularly his stance on China.
“Tariffs on China would have two immediate consequences. One, American workers who depend on low-cost Chinese goods would see their standard of living fall immediately. The likelihood that these industries will return to the US is very low. On the other side, there would be retaliation. China would have within the World Trade Organization the right to impose retaliation against buying all the things they buy from the US. It would be a trade war. China would only do it selectively and the probability is that there would be more jobs destroyed than would be created. The net effect on employment would be negative. I think the US would find itself the big loser.” He further said, “The whole framework in which he looks at it is something that would be given a student in a principles course in economics an F.”
Contrary to what Stiglitz said, Billionaire investor Carl Icahn continued to throw his support behind Trump, saying he would reduce the regulation of US companies. “If you look ahead three years, this economy will be a lot better if Trump gets elected” rather than Democratic candidate Hillary Clinton, Icahn said. Trump on the other hand praised Icahn saying that he would be a great US Treasury secretary. “Icahn would be a great US Treasury secretary.” Whether the 80-year-old hedge fund manager would commit to such a role remains unclear.
Stiglitz, 73, was chairman of the Council of Economic Advisers from 1995 to 1997, making him a member of cabinet when Bill Clinton was president.