Krugman says Trump allies are distorting economic reality as election nears

Paul Krugman, a Nobel laureate in economics, cautioned that President Donald Trump and his allies are resorting to deceptive messaging to shape voter perception of the economy. He highlighted a contrast between the administration’s claims of a "golden age" and data showing slower growth, higher inflation and a K-shaped recovery that benefits corporations more than workers. Krugman recalled that inflation, which spiked during the Biden administration, subsequently fell dramatically, and that by the end of that term the U.S. economy was stronger than most peers.

Since Trump’s return to the White House, key indicators have deteriorated, with rising interest rates and widening income gaps. While acknowledging that inflation remains below historic peaks and unemployment stays modest, Krugman emphasized that these modest positives offer little comfort given the self-created economic challenges. He concluded that the disconnect between Trump’s promises and the lived experience of households is likely to hurt his electoral prospects.