Nobel laureate Paul Krugman has taken a potshot at former President Donald Trump‘s campaign for focusing on what he describes as “imaginary” problems.
What Happened: In a post on X, formerly Twitter, Krugman accused the Trump campaign of denouncing a non-existent bad economy, runaway crime, and alleged failures by President Joe Biden and Vice President Kamala Harris‘ administration.
According to Krugman, “We've all become desensitized, but it's amazing how at this point the Trump campaign rests entirely on denouncing things that aren't happening — a imaginary bad economy, imaginary runaway crime and now an imaginary failure of Biden and Harris to respond to natural disaster.”
He elaborated on his views in an opinion piece for The New York Times published the same day.
In his opinion piece titled “Why Trumponomics Could Lead to Trumpflation,” Krugman warned that Trump’s economic policies could lead to significant inflation. He argued that Trump’s proposed high tariffs, mass deportations, and undermining of the Federal Reserve’s independence would disrupt the economy.
Krugman also highlighted that the Federal Reserve’s preferred measure of consumer prices rose only 2.2% over the past year, close to its 2% target, without causing a recession.
He credited the Biden administration for not pressuring the Fed to keep rates low, which helped manage inflation expectations.
Krugman concluded that Trump’s policies could lead to long-term stagflation, contrasting the current administration’s handling of economic issues.
See Also: Economist Ben Golub Sounds Alarm On Upcoming US Shipping Strike Affecting 36 Ports
Why It Matters: Krugman’s comments come amid heightened scrutiny of Trump’s economic policies. Earlier this month, Krugman criticized Elon Musk and Trump’s federal efficiency plans, warning about risks to Medicare and Social Security.
He stated, “The federal government is an insurance company with an army. You can’t make major spending cuts without slashing Social Security, Medicare and Medicaid and/or weakening national defense.”
In mid-September, Trump voiced his disapproval of the Federal Reserve’s decision to cut its benchmark interest rate by half a percentage point, suggesting it indicated a faltering U.S. economy or a politically motivated action. He said, “I guess it shows the economy is very bad to cut it by that much, assuming that they are not just playing politics.”
Additionally, Trump has claimed that inflation has cost American households $28,000, a figure that has sparked debate among economists and analysts. During a rally in Las Vegas, Trump asserted that “the worst inflation in American history” has caused severe financial strain for American families.
Adding to the controversy, Trump recently launched a $100,000 luxury watch collection, while his wife, Melania Trump, voiced concerns over rising inflation and its impact on American families.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
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