3 Signs US Economy Will 'Get Worse,' According to Joseph Stiglitz
Business Insider • • general
Key Points:
- Nobel laureate economist Joseph Stiglitz expressed a pessimistic outlook for the US economy, citing concerns over tariffs, declining jobs, and interest rates despite recent strong GDP growth figures.
- Stiglitz highlighted that tariffs, particularly those imposed under President Trump, disproportionately harm lower-income households by raising prices and reducing disposable income, making the inflationary impact regressive.
- Employment in manufacturing and blue-collar sectors continues to decline, contradicting claims that tariffs would revive these industries and boost job growth.
- Stiglitz criticized the push to lower interest rates, especially comments from Trump's Fed Chair nominee Kevin Warsh about AI-driven productivity gains, warning that premature rate cuts could stoke inflation and damage the Federal Reserve's credibility.
