Betsey Stevenson, a former economic advisor to President Barack Obama, has publicly criticized J.D. Vance, the Republican vice presidential nominee, for spreading misinformation about the impact of tariffs on consumer prices.
Stevenson, who served on Obama’s Council of Economic Advisers and as chief economist at the Department of Labor, took to social media to refute Vance’s assertion that tariffs on Chinese goods led to lower prices for Americans. She argued that this claim is demonstrably false, stating, “The frustrating point about Vance’s lie is that policymakers need to know the true effects of policy and make decisions based on facts and preferences.”
Stevenson specifically addressed Vance’s claims during an appearance on NBC’s “Meet the Press” where he defended former President Trump’s tariff policies, arguing that they did not amount to a tax on American consumers. Vance dismissed the notion that these tariffs cost Americans nearly $80 billion in new taxes, claiming the real targets were foreign importers who relied on cheap labor to undercut U.S. workers.
Stevenson’s critique follows a pattern of controversial statements and actions by Vance. He has also opposed the establishment of a Chinese battery plant in Michigan, attributing the decision to Democratic policies and Vice President Kamala Harris. He linked this to the Inflation Reduction Act (IRA), which Harris supported, accusing her of enabling Chinese companies to access clean-energy companies.
Adding to the controversy, Vance recently made headlines with a bold claim that owning a new car costs every American $50,000 a year, blaming Vice President Harris for the increase in costs. This statement quickly became a trending topic, drawing mixed reactions on social media.
Stevenson, in her rebuttal, cited former White House Council of Economic Advisers Chair Jared Bernstein’s explanation of tariff economics, emphasizing the importance of understanding their actual impact. “As @econjared46 honestly acknowledges tariffs raise prices to shift consumption toward domestic producers,” Stevenson noted. Bernstein had earlier clarified the purpose of tariffs, stating, “The point of such tariffs is to raise the price of imports so consumers will buy domestic products. If they don’t change relative prices, they don’t ‘work.’”
The controversy surrounding Vance’s statements highlights the ongoing debate about the effects of tariffs and their impact on both consumers and the broader economy. Stevenson’s criticism underscores the importance of accurate information and evidence-based policymaking in navigating these complex economic issues.
