{"id":521841,"date":"2025-10-23T09:33:10","date_gmt":"2025-10-23T09:33:10","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/521841\/"},"modified":"2025-10-23T09:33:10","modified_gmt":"2025-10-23T09:33:10","slug":"paul-krugman-warns-why-trumps-economy-is-in-worse-shape-than-it-looks","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/521841\/","title":{"rendered":"Paul Krugman Warns Why Trump\u2019s Economy Is \u2018In Worse Shape Than It Looks\u2019"},"content":{"rendered":"

Renowned economist Paul Krugman on Wednesday issued a dire analysis of the current state of the U.S. economy under President Donald Trump<\/a>.<\/p>\n

And he warned that it\u2019s actually \u201cin worse shape than it looks.\u201d<\/p>\n

Read Krugman\u2019s full analysis on Substack<\/a>.<\/strong><\/p>\n

The economy may appear to be \u201cOK by the most commonly used measures,\u201d such as unemployment levels, the 2008 winner of the Nobel Memorial Prize in Economic Sciences wrote in his email newsletter.<\/p>\n

But it\u2019s \u201cdefinitely not OK once you look under the hood,\u201d he warned.<\/p>\n

It\u2019s \u201cstrongly bifurcated\u201d with investment in artificial intelligence \u201cbooming\u201d in stark contrast to the rest of the economy, he said, noting the economy feels \u201cfrozen\u201d with the job market almost stalled.<\/p>\n

Trump\u2019s \u201cwildly erratic policies are creating huge uncertainty which is deterring many companies \u2013 essentially those that are not in the AI sector or a sector catering to the affluent \u2013 from making investments,\u201d said Krugman.<\/p>\n

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\u201cThe result is that much of the economy is frozen \u2014 companies aren\u2019t hiring or investing,\u201d he noted. And \u201cithout the AI boom\/bubble spending, we might very well have fallen into a recession,\u201d he suggested, noting the consensus among fellow economists.<\/p>\n","protected":false},"excerpt":{"rendered":"Renowned economist Paul Krugman on Wednesday issued a dire analysis of the current state of the U.S. economy…\n","protected":false},"author":2,"featured_media":521842,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[51,32,1700,138208,16,15],"class_list":{"0":"post-521841","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-donald-trump","10":"tag-economy","11":"tag-paul-krugman","12":"tag-uk","13":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115422796573539720","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/521841","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=521841"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/521841\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/521842"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=521841"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=521841"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=521841"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}