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Nobel Economists Warn: Trump's Policies Threaten Economic Stability and Success

In a new letter signed by 23 Nobel laureate economists, they stated: "Among the key factors determining economic success are the rule of law and economic and political certainty, and Trump threatens all of these."
The letter, reported by CNN and reviewed by "Al Arabiya Business," was signed by over half of the Nobel Prize winners in Economics in the United States. It described Vice President Kamala Harris’s economic agenda as "significantly superior" to the plans laid out by former President Donald Trump.
The economists wrote: "Simply put, Harris’s policies will lead to stronger economic performance, with more robust, sustainable, and equitable economic growth." The letter was signed by 23 Nobel-winning economists, including two of the three most recent laureates.
The economists stated: "While each of us has different views on the details of various economic policies, we believe that Harris’s economic agenda will overall improve the health, investment, sustainability, resilience, job opportunities, and justice in our nation, and will significantly outperform Donald Trump's unproductive economic agenda."
The letter serves as a seal of approval for Harris less than two weeks before election day on an issue that voters consistently rank as the most important in economic polls.
The letter was led by Joseph Stiglitz, a Columbia University professor and 2001 Nobel laureate, marking the second major push in the campaign by a group of Nobel laureates.
Stiglitz also led an effort in June, along with 15 of his fellow Nobel winners, to highlight what the signatories said would be the "destabilizing effects" of a second Trump term on the U.S. economy. At that time, the group stated that Biden's economic agenda was also "significantly superior."
Trump dismissed the group's letter at that time, criticizing his campaign for those who signed it, describing them as "worthless economists out of touch with reality."
However, the new letter, which began to take shape after Harris outlined her economic vision late last month, includes seven new signatories and represents a wide range of expertise and approaches to dealing with the economy.
The expanded group includes two of the three most recent winners—Simon Johnson and Daron Acemoglu from the Massachusetts Institute of Technology. They received the award, along with James Robinson from the University of Chicago, last week for their research on how institutions shape countries that become rich and prosperous.
The letter is deliberately concise at just 228 words, reflecting an effort to secure consensus across a broader array of economists and a desire to elevate that consensus accurately, according to a source familiar with the process. It was crafted to incorporate feedback from the initial effort.
It also serves as a last-minute effort in the campaign to raise what the participants see as a sharp danger posed by Trump, both in his economic proposals and, in their view, the potential instability he could create in a region where certainty and stability are of utmost importance.
The letter refers to Trump's tariff and tax policies as inflationary and likely to lead to federal deficit inflation—a widely held view among economists. But it also issues a stark warning.
Despite warnings and forecasts from economists across the political spectrum, Trump has remained steadfast in his pledge to use the threat of sweeping tariffs as a cornerstone of his economic agenda.
Trump stated, "The most beautiful word in the dictionary is tariff." "It’s my favorite word."
He promised broad tax cuts beyond the 2017 tax law and pledged to eliminate taxes on tips, overtime, and Social Security benefits, which analysts say would cost trillions of dollars, all while pointing to tariffs and economic growth as a means to offset the loss of revenue.
Economists view tariffs as a tax on consumers who buy imported goods.
He has pledged to eliminate regulatory constraints broadly, and as part of his efforts, he has unleashed an increase in oil and gas drilling. He has also vowed to deport all undocumented immigrants in the U.S. in the "largest deportation effort" in the country’s history.
Trump has long had an advantage when it comes to the candidate voters believe will handle the economy better as they grapple with widespread discontent about the state and direction of the U.S. economy.
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BENEFIT AGM approves 10%...
- March 27, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).
Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.
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