One Trump move will 'make Americans measurably poorer': Nobel Prize-winning economist
Donald Trump's economic policies will leave Americans poorer in the long term, a Nobel Prize winner has claimed.
Paul Krugman believes there is a measured decline unfolding in the US, with many set to feel the burden of the president's policy. Writing in his Substack, the award-winning economist suggested the longer-term economic traditions are at risk, and as such, the spending power of the American people.
He wrote, "The world trading system as we knew it lasted for three generations after World War II. It was a rules-based system, in which everyone considered the U.S. a reliable, trustworthy partner. But now US economic relations with other nations have turned abusive, and the world is moving toward divorce. And this will make Americans measurably poorer."
Krugman went on to suggest the rest of the world doesn't need the US economy as much as it needs the European Union or other countries they do trade with.
He wrote, "Unlike Donald Trump, who thinks of international trade as a zero-sum game, the Europeans and the Indians understand that a free trade agreement between them is a very good deal for both parties.
"They are two very big economies. Although Trump administration officials like to sneer at European economic performance, the economy of the European Union is roughly the same size as ours," he further added.
"At the time of writing Trump hadn’t reacted to the EU-India deal. Maybe nobody in his administration told him because they are in crisis over the Pretti murder fall-out."
"At some point, however, I expect him to rage-tweet about it, he did about Canada’s more modest trade deal with China. In general, we can expect Trump to threaten to put tariffs on everyone trying to pivot away from dependence on a nation whose policies are, well, driven by rage tweets."
"But more U.S. economic intimidation isn’t going to work, because Trump doesn’t have the cards. Access to the U.S. market just isn’t as important to other countries as he imagines."
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