{"id":22009,"date":"2024-06-14T21:24:27","date_gmt":"2024-06-14T21:24:27","guid":{"rendered":"https:\/\/www.thinkadvisor.com\/2024\/06\/14\/trump-tax-ideas-would-lead-to-mother-of-all-stagflations-summers\/"},"modified":"2024-06-14T21:24:27","modified_gmt":"2024-06-14T21:24:27","slug":"trump-tax-ideas-would-lead-to-mother-of-all-stagflations-summers","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2024\/06\/14\/trump-tax-ideas-would-lead-to-mother-of-all-stagflations-summers\/","title":{"rendered":"Trump Tax Ideas Would Lead to &#8216;Mother of All Stagflations&#8217;: Summers"},"content":{"rendered":"<div class=\"media_block\"><a href=\"https:\/\/feeds.feedblitz.com\/-\/899487449\/0\/thinkadvisor\/\"><img decoding=\"async\" src=\"https:\/\/images.thinkadvisor.com\/contrib\/content\/uploads\/sites\/415\/2023\/10\/Donald-Trump_640x640.jpg\" class=\"media_thumbnail\"><\/a><\/div>\n<div><img decoding=\"async\" src=\"https:\/\/images.thinkadvisor.com\/contrib\/content\/uploads\/sites\/415\/2023\/10\/Donald-Trump_640x640.jpg\" class=\"ff-og-image-inserted\"><\/div>\n<div class=\"the-advisor bullet-summary\">\n<h3>What You Need to Know<\/h3>\n<ul>\n<li>Trump has floated tariff hikes as a way to pay for some income tax cuts.<\/li>\n<li>His anti-immigration stance could squeeze the labor supply, and repealing Biden&#8217;s renewable energy subsidies would push up power costs, the former Treasury secretary says.<\/li>\n<li>A Trump spokeswoman said his policies would reduce inflation.<\/li>\n<\/ul>\n<\/div>\n<p id=\"first-para\">Former Treasury Secretary Lawrence Summers blasted policy ideas floated by former President Donald Trump as immensely damaging to both the U.S. and the global economy.<\/p>\n<p>\u201cThis is a prescription for the mother of all stagflations,\u201d Summers said on Bloomberg Television\u2019s&nbsp;<em>Wall Street Week<\/em>&nbsp;with David Westin Friday, with regard to replacing a major amount of income-tax revenue with tariffs. It would also create \u201cworldwide economic warfare,\u201d he said.<\/p>\n<p>Summers was speaking a day after Trump&nbsp;<a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-06-13\/trump-floats-tariffs-hikes-to-offset-some-income-tax-cuts\" target=\"_blank\" rel=\"noopener noreferrer\">presented the idea<\/a>&nbsp;of using tariff hikes as a way to pay for some income tax cuts in a meeting with House Republicans. Trump has also proposed a minimum 10% universal import levy and a punitive rate for China.<\/p>\n<p>A shift to relying on tariffs for revenue would push up not just the cost of imports, but those of goods and services that compete with those imports, Summers said. Consumers would have less to spend on everything else, creating a \u201cdownward spiral\u201d in the economy, he said.<\/p>\n<p>\u201cI don\u2019t think there\u2019s been a more inflationary presidential economic policy platform in my lifetime,\u201d said Summers, a Harvard University professor and paid contributor to Bloomberg TV. \u201cPerhaps George McGovern in 1972 in some ways&nbsp;<a href=\"https:\/\/time.com\/archive\/6840154\/issues-mcgovernomics-a-more-modest-proposal\/\" target=\"_blank\" rel=\"noopener noreferrer\">would be a comparison<\/a>,\u201d he said, referring to the Democratic nominee who lost in that contest.<\/p>\n<h2>Campaign Response<\/h2>\n<p>Asked about Summers\u2019s criticisms, Karoline Leavitt, a Trump campaign spokesperson, said, \u201cPresident Trump\u2019s first-term pro-growth economic policies created record-low mortgage, interest and unemployment rates and made inflation virtually non-existent.\u201d<\/p>\n<p>\u201cAmericans can expect President Trump\u2019s second-term economic agenda will have the same impact and end Joe Biden\u2019s inflation crisis that continues to rob working families of thousands of dollars every month,\u201d Leavitt said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What You Need to Know Trump has floated tariff hikes as a way to pay for some income tax cuts. His anti-immigration stance could squeeze the labor supply, and repealing Biden&#8217;s renewable energy subsidies&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":22010,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[1],"jetpack_featured_media_url":"https:\/\/blog.lifeinsurance-orleans.ca\/wp-content\/uploads\/2024\/06\/trump-tax-ideas-would-lead-to-mother-of-all-stagflations-summers.jpg","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/22009"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=22009"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/22009\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media\/22010"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=22009"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=22009"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=22009"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}