Trump’s economic policies to improve US trade deficit ‘will fail’ says Nobel laureate Joseph E. Stiglitz
By Hugo Novales
It’s not often that a Nobel laureate visits the FCC.
Professor Joseph E. Stiglitz, winner of the 2001 Nobel Prize in Economics, visited Hong Kong in mid-November for the International Forum on China’s Economy and Policy 2025 and came to speak at the FCC while in town. Despite being an early-morning breakfast event, a fully-booked Main Dining Room awaited the renowned economist.
Alongside FCC First Vice President Karen Koh, Professor Stiglitz first gave his overall impressions of Trump’s economic policies since he took office in January 2025.
“Terrible. I don’t know where to begin in saying it’s gone wrong. I don’t think the full consequences have been felt,” he said.
His criticism stemmed from the Trump administration’s focus on economic policies that function as a quick-fix to present circumstances. Most of the US’ competitors, including China, prefer long-term economic planning in order to maintain longevity. He then explained how Trump’s brash attitude and new policies both mimic plays from a fascist’s handbook.
“I think this current administration is an abandonment of 250 years of what in the West we would call Enlightenment. It’s an attack on Enlightenment. It is the attack on science, attack on our universities, attack on the rule of law. It is trampling on the legal framework… So it’s fascism, in a way,” he said.
Since starting his second term as US president, Trump has feuded with various facets of American society, including news organisations, former allies, political opponents, and universities. Professor Stiglitz finds that Trump’s many attacks on whoever he disagrees with as undermining the U.S.’ competitive edge on the global stage.
“The US cannot function well as a society without the rule of law, with a society that’s so divided and without science, without technology, which is our comparative advantage,” he said.
One of Trump’s goals is to bring manufacturing back to the US. Car factories, ship-makers, iron workers, and other fields that have been outsourced to other developing countries decades ago are all on the president’s revival agenda, yet Professor Stiglitz believes this won’t be effective.
“Trump is living in the 1950s,” he said, emphasising that these industries are long gone — transferred to other developing countries decades ago — and even if they were to return, they would still only account for 8-9% of the country’s GDP.
Instead, Professor Stiglitz argues, the US should identify where its economy isn’t developing as well and should prioritize improving these areas. He notes that the Trump administration has this tactic of restructuring in mind, however it’s misguided and will only result in further economic stagnation. He also suggested that U.S. influence internationally may become less important as it’s seen as a less reliable partner, and its soft power wanes.
“He’s going to fail,” he concluded.
To watch the full discussion, please visit the FCC’s YouTube channel:
