‘Trump will benefit from Biden’s policies,’ says Nobel Laureate Acemoglu on US economy

Nobel Laureate Daron Acemoglu warns about the potential risks of Donald Trump’s economic policies, emphasizing that high tariffs and a focus on domestic production may not generate job growth and could even disrupt complex global supply chains.

In a recent post on X, Acemoglu commended certain aspects of President Biden’s policies, particularly their successes in employment and wage growth, stating, “Many of Biden’s policies have delivered substantial achievements, yet the benefits may ultimately be credited to Trump, who is likely to claim them as his own.”

Peki Trump yönetimindeki bir ekonomiden neler beklemeli? Maalesef işçiler açısından haberler iyi olmayacak. Trump’ın genel ajandası da büyük riskler içeriyor. Özellikle yapay zeka ve genelde Silicon Valley’e olan yaklaşımı ve Amerikan kurumlarına olası etkilerinden dolayı.…

— Daron Acemoglu (@DAcemogluMIT) November 9, 2024

Acemoglu also highlighted concerns about Trump’s stance on cryptocurrencies, suggesting it could open doors to new forms of financial scams.

He remarked, “This approach could lead small investors to lose money in unsustainable market bubbles.” Adding further, he expressed skepticism about any positive outcomes for American workers or consumers from deregulated cryptocurrency markets.

Acemoglu was critical of Trump’s approach to artificial intelligence regulation, describing it as “a poor strategy.” He cautioned that lifting regulations on AI could drive rapid automation, potentially reducing labor costs but leading to unemployment for American workers:

Trump poses a significant threat to American institutions. While I don’t believe U.S. democracy would collapse in four years, Trump’s tenure would likely intensify the erosion of democratic norms, heighten political uncertainty, deepen polarization, and undermine public trust in institutions.

Daron Acemoglu, Nobel Laurate Economist

Acemoglu characterized Trump’s leadership as a test for America’s economic institutions, warning that “Trump’s approach may come at a significant cost to the economy.”