On June 26th, Caijing News (Editor Liu Rui) reported that 16 Nobel laureate economists jointly signed an open letter, shocking the American political circle.

These self-proclaimed "nonpartisan" economists warned jointly that U.S. President Biden's economic agenda is "far superior" to Republican presidential candidate Trump's. If Trump wins the U.S. presidential election in November of this year, it will re-exacerbate inflation in the United States.

Trump's team strongly opposes this heavy letter, claiming that these Nobel laureates are "out of touch with reality"; while Biden's team promotes it extensively, emphasizing that Trump's economic agenda is very dangerous.

Joint warning of 16 Nobel laureates

This letter was signed by Joseph Stiglitz, winner of the 2001 Nobel Prize in Economics, and other signatories to the letter include Angus Deaton, winner of the 2015 Nobel Prize in Economics, Robert B. Wilson, winner of the 2020 Nobel Prize in Economics, and so on.

These 16 Nobel laureates stated in the letter that Trump's economic plan will re-ignite inflation, partly because he promises to impose harsher tariffs on Chinese imports, which will raise the price of many products purchased by American consumers.

These economists wrote: "Non-partisan researchers, including Evercore, Allianz, Oxford Economics and the Peterson Institute, predict that if Donald Trump successfully implements his agenda, it will exacerbate inflation."

"Although each of us has different opinions on various economic policies, we all agree that Biden's economic agenda is far superior to Trump's," these economists wrote in the letter, "we believe that Trump's second term will have a negative impact on the United States, shaking not only America's economic position in the world, but also increasing domestic economic instability."

Inflation will be a key issue in the election

According to poll results, this year's U.S. presidential election is evenly matched between Biden and Trump, and the final election result is likely to be determined by voters in a few battleground states.

On Thursday, Eastern Time, the United States will hold the first presidential candidate debate, and the economic issues of the United States will definitely be the main topic of debate between Trump and Biden.

Trump is expected to blame high prices and inflation on Biden, while Biden will claim that Trump's trade policies (including tariffs) will exacerbate inflation.

According to poll results, although overall inflation in the United States has slowed down in the past two years, many American consumers are still dissatisfied with the rising prices of food, gasoline, and other products.

And Trump has promised to impose tariffs on foreign imports once in office. This has raised concerns among economists that this cost will be passed on to American consumers in the form of price increases.

Economists wrote in the letter: "Although inflation has fallen rapidly, many Americans are still concerned about inflation. So there is reason to believe that Trump's irresponsible fiscal budget will rekindle this inflation."

Trump team: Nobel laureates out of touch with reality

In response to these economists' warnings, the Trump team expressed strong opposition.

Karoline Leavitt, a spokesperson for the Trump campaign team, said in an interview: "The American people don't need these valueless, out-of-touch Nobel laureates to tell them which president will give them more money."

She also emphasized that if Trump is re-elected, he plans to implement an agenda that is "beneficial to growth, energy, and employment, to reduce the cost of living and improve the standard of living for all Americans."

And Biden's campaign team took the opportunity to promote the letter heavily: "Top economists, Nobel laureates and business leaders all know that America cannot afford Trump's dangerous economic agenda."