The whistleblower of high inflation in the United States angrily criticizes the fiscal revenue system proposed by Trump: This is the mother of stagflation!

Former U.S. Treasury Secretary and whistleblower on U.S. high inflation, Summers, harshly criticized the fiscal revenue system concept proposed by former President Trump recently, believing that these ideas would cause huge damage to the U.S. and global economy.

As mentioned in a previous article on Wall Street News website, media cited a Republican congressman who attended the meeting, stating that on Thursday, Trump returned to Capitol Hill to meet with House Republicans and U.S. business leaders. Trump put forward the idea of a "full tariff" federal revenue system, which is large enough to replace income tax.

In response, Summers stated on Friday that this is the mother of stagflation, which will trigger a global economic war:

Summers believes that relying on tariffs to generate revenue will not only raise the cost of imports, but also raise the cost of goods and services competing with these imported products. Consumers will have less money to spend on everything else, leading to a downward economic spiral.

Summers bluntly stated that in his lifetime, no presidential candidate's economic policy agenda is more likely to cause inflation than Trump's, perhaps comparable to McGovern in 1972 to some extent. Summers mentioned McGovern, who failed in that year's election.

Summers also criticized other aspects of Trump's policy proposals:

Advocating for a depreciated U.S. dollar to give cost advantages to U.S. exports, as well as policies that force the Fed to lower interest rates while implementing trade protectionism, is irresponsible.

He also mentioned Trump's anti-immigration stance, stating that restrictions on labor supply will lead to much greater wage inflation pressure.

Cutting Biden's subsidies for renewable energy will also raise energy costs.

Summers stated that faced with any political pressure, the Fed may be forced to prove its credibility by maintaining interest rates above normal levels. "This could easily lead to mortgage rates reaching 10%—I experienced this when buying my first house, but I didn't expect this situation to happen again in the U.S. This is really dangerous."

Summers stated that it is currently unclear what Trump's true policy intentions are, and suggested that those running for public office sometimes do not take what they say seriously, which may be a characteristic of Trump.

Summers is a Democrat, and he also called on Republican-leaning business leaders and economists to discuss the consequences of Trump's economic policy ideas, while emphasizing that he has always been willing to point out issues in Democratic President Biden's policies. In March 2021, Summers fiercely criticized Biden's pandemic stimulus plan, calling it excessive and inflationary. It is for this reason that Summers is known as the whistleblower on high inflation in the U.S., and his views are highly regarded.

When asked about Summers' criticism, Trump campaign spokesperson Karoline Leavitt responded that Trump's first term growth-promoting economic policies created record low mortgage rates, interest rates, and unemployment rates, with almost no inflation. Americans can expect that Trump's second term economic agenda will have the same impact and end Biden's inflation crisis, which continues to take away thousands of dollars from working families every month