The US economy may be heading down a risky path, despite indicators that, on the surface, suggest a certain degree of resilience. This is the stark assessment made by economist Joseph Stiglitz, Nobel Prize winner in Economics, who believes that the policy choices made by Donald Trump are durably undermining the foundations of the American economy while deepening global imbalances.
According to Stiglitz, the return of policies marked by protectionism, institutional unpredictability, and inward-looking strategies comes at a time when the global environment is already fragile. The international economy is facing a period of heightened tension, shaped by persistent geopolitical conflicts, fragmented trade relations, high public debt, and lingering inflationary pressures across many regions. In this unstable context, US decisions carry particular weight, given both the country’s central role in the global economy and its political influence.
The economist emphasizes that Donald Trump’s trade policy is one of the main sources of economic vulnerability. The introduction—or repeated threat—of import tariffs disrupts global value chains, raises production costs for American companies, and ultimately leads to higher prices for consumers. Contrary to promises of industrial revival, these measures have failed to generate large-scale, sustainable job creation, while simultaneously eroding the overall competitiveness of the US economy.
Joseph Stiglitz also criticizes immigration policy, which he considers economically counterproductive. Strict immigration restrictions and mass deportations reduce the available workforce in key sectors such as agriculture, construction, and services. This contraction of labor supply weighs on output, slows economic growth, and dampens domestic consumption, thereby weakening overall demand.
On the fiscal front, the economist warns against what he views as short-term and inconsistent budgetary management. Broad, untargeted tax cuts, combined with insufficient public investment in infrastructure, education, and the energy transition, limit long-term growth potential. This strategy increases deficits without strengthening the country’s productive capacity, heightening the risk of future financial imbalances.
Political uncertainty is another major source of concern. Frequent policy reversals, challenges to established rules, and tensions with institutions undermine investor confidence, both domestically and internationally. In a globalized economic environment, legal stability and predictable public policies are essential for attracting long-term investment. Yet, according to Stiglitz, the United States increasingly appears as an economically unstable environment, which could divert investment flows toward other regions.
Beyond US borders, these choices have global repercussions. The questioning of multilateralism and international agreements contributes to the fragmentation of the global economy, intensifying tensions between major economic powers. This trend increases the risk of a broader economic slowdown and weakens the cooperative mechanisms needed to address shared challenges, whether related to climate change, financial stability, or development.
Joseph Stiglitz argues that Donald Trump’s economic policies represent a risky gamble, one that could produce lasting negative effects. By prioritizing short-term political gains, the United States may jeopardize its long-term economic stability and weaken its leadership role in the global economy. For the economist, this is less an ideological debate than a warning: even a major economic power can, through its own choices, place itself in a position of vulnerability.
