Krugman slams Treasury official's claims as a "Trump economy"

On a Friday night broadcast of MS NOW, Nobel laureate Paul Krugman confronted Treasury Secretary Scott Bessent after Bessent claimed that eliminating illegal immigration would cause inflation and rent prices to fall. Krugman countered that such statements reflect a "Trump economy" driven by irresponsible policies. He highlighted that the United States added roughly 100,000 jobs per month during the last year of the Biden administration, compared with just over 30,000 per month under Trump, indicating a sharp slowdown.

Krugman emphasized that the current economic environment favors a very small group of wealthy investors rather than the majority of citizens. He also noted that unlike previous presidents, Trump bears direct responsibility for the economic downturn due to actions such as initiating a war that disrupts energy shipping and imposing large tariffs. The economist concluded that the situation threatens Republican prospects in the upcoming election.