6 Nobel Prize-Winning Economists Have ‘Grave Concerns' About Trump's Bill — Should You Be Worried?
Six Nobel Prize-winning economists issued a public warning about President Donald Trump's proposed budget bill, calling its priorities harmful to the U.S. economy. In their joint statement made via nonpartisan think tank the Economic Policy Institute, they cited 'grave concerns' over how the bill would affect U.S. households.
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Their criticism focused on two things: tax cuts for corporations and high earners, and cuts to essential assistance programs. Their concern is that the bill would shift wealth upward while reducing economic stability for everyone else — but should Americans be concerned?
According to the economists, this bill includes tax cuts that are 'overwhelmingly tilted toward the highest-income households.' It also cited the preservation of a corporate income tax cut.
Supporters argue this would fuel business investment and wage growth, according to The White House, but the economists disagree. They said these tax cuts, along with other factors in the bill, would lead to higher public debt and deficits.
The Tax Foundation, on the other hand, cited both pros and cons to the tax provisions in the bill, claiming that it includes some 'smart tax cuts,' but also noting that some tax cuts were chosen over 'more effective measures to grow the economy.'
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More damaging than the tax cuts, the economists said, are the proposed cuts to Medicaid and the Supplemental Nutrition Assistance Program (SNAP), both services that millions of Americans depend on — especially those living paycheck to paycheck.
They described the Medicaid cuts as 'a sad step backward in the nation's commitment to providing access to health care for all' and emphasized that the impact would extend well beyond those targeted by proposed work requirements.
These cuts, they wrote, threaten not only low-income households but also the stability of state budgets and particularly rural hospital systems that rely heavily on Medicaid funding.
The White House, on the other hand, claimed that the bill 'makes permanent fixes' to these programs, which would save taxpayers money.
Although inflation has eased in recent months, the economists argue that this budget could increase financial strain in the future, causing 'acute and immediate damage' to millions of families.
Safety net programs like Medicaid and SNAP support low-income households, and the proposed cuts could hit them hardest. Additionally, the bottom 40% of households would face 'absolute losses,' according to the economists.
Their message is clear that this isn't just about fiscal policy; it's about day-to-day economic stability. The White House, on the other hands, has said this bill would 'supercharge' the economy, citing wage increases, tax credits and tax cuts.
There are many differing opinions on what the impacts of this bill would be for Americans if it were to pass. The economists in the open letter explained that this bill fails to address many economic challenges the U.S. is facing, while proponents of the bill think it would boost the economy and save Americans money.
It remains to be seen what the outcome of the bill will be. Some congressional leaders want to pass the bill, while others are pushing back, so Americans will have to wait and see whether the bill will pass and what its impacts will be. In the meantime, Americans can practice good financial management, like paying down debt and sticking to a budget, to ensure their finances are in order in the event of any impacts this bill could have on their wallets.
Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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This article originally appeared on GOBankingRates.com: 6 Nobel Prize-Winning Economists Have 'Grave Concerns' About Trump's Bill — Should You Be Worried?
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