Nobel Prize winners sound the alarm: Trump's policies are endangering the global economy!

Nobel Prize winners sound the alarm: Trump's policies are endangering the global economy!

On August 28, 2025, 18 Nobel Prize winners in economics gathered for the 8th Lindau Nobel Meeting in Economic Sciences on Lake Constance. The agenda included crucial topics such as inflation, economic nationalism and the influence of artificial intelligence on labor and financial markets. However, the focus of the discussion was the massive criticism of Donald Trump's economic policy. Joseph Stiglitz, the Nobel Prize-winning economist and professor at Columbia University, spoke negatively about the US economy under Trump, describing the US as a “high-risk location” for investment. He expects “devastating” stagflation that could endanger not only the American but also the global economy.

Stiglitz warned that the uncertainties of political chaos and “disregard for the rule of law” were serious risk factors. Investors were looking for legal certainty that, in his opinion, no longer existed in the USA. Characterized by constant changes and unpredictable measures, the USA has become a “scary place for investments” under Trump. This would be in stark contrast to expectations of positive economic development. Despite cuts in taxes and wages that would normally be market-friendly, the weakening US stock market shows the opposite is true.

Criticism of Trump and his political measures

In his remarks, Stiglitz also criticized Trump's tariff policy, which he said was putting the Federal Reserve in a difficult position. This uncertainty caused by unpredictable decisions could cause US inflation to rise to record highs. Stiglitz argued that the tax cuts Trump made during his first term widened the trade deficit and that similar developments can be expected again.

Simon Johnson, another Nobel laureate, called American isolationism a “self-destructive and foolish act.” Such measures, which weaken the United States' international reputation, leave both investors and the national economy facing an uncertain future. Roger Myerson also raised concerns about the state of democracy in the US and voter support for authoritarian leaders, which further undermines trust in political institutions.

Trump's quest for recognition

In the midst of these critical discussions, the question arises about Trump's aspirations for international fame. According to reports, Trump has already asked several countries to nominate him for the Nobel Peace Prize. Hilary Clinton announced that she would nominate Trump if he managed to end the war in Ukraine without Ukraine having to cede territory. But while Trump longs for international recognition, even in the magnificently designed Oval Office, his self-centered behavior is described by Reinhard Haller as textbook-like.

All in all, there is a worrying picture of the US economy under Trump's leadership - characterized by financial uncertainty, political tensions and a potential economic standstill. Experts at the Lindau Nobel Meeting agreed that current developments are alarming for both the United States and the global community.