Paul Krugman Warns: Trump's 2024 Victory Could Wreck US Economy and Global Stability
October 22, 2024In a recent article series, Paul Krugman examines Donald Trump's statements and their implications for the upcoming election.
Krugman warns that a Trump victory in 2024 could severely disrupt the US economy and global order.
He describes 'Trump 2.0' as more radical than his first term, with proposals to raise tariffs to their highest levels in 90 years and implement mass deportations that could eliminate over 5% of the US workforce.
Business leaders are advised to be cautious about underestimating Trump's destructive economic policies, as he may not be swayed by reason if elected.
Krugman expresses concern over Trump's erratic behavior, especially regarding the potential for him to regain control of America's nuclear arsenal.
Many voters remain unaware of the specifics of economic plans proposed by both candidates, focusing instead on their immediate economic experiences.
The narrow polling gap between Kamala Harris and Donald Trump reflects the public's limited engagement with detailed policy proposals.
If elected, Harris is expected to prioritize strengthening the social safety net, particularly in child care and home care for seniors, though major shifts in overall economic direction are not anticipated.
Krugman credits the Biden administration for the current resilience of the US economy, noting that inflation has returned to target levels and employment remains strong.
He emphasizes the need for cautious monitoring of the economy to prevent unforeseen downturns while acknowledging the success of the Federal Reserve's rate hikes in curbing inflation.
Krugman predicts that the Federal Reserve will continue to cut rates, albeit at a slower pace, following their recent 50 basis point cut in September.
Despite current economic strengths, Krugman expresses unease about potential unseen threats that could disrupt stability, likening it to a 'Wile E. Coyote moment.'
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