Wall Street Week Nobel Laureate Paul Krugman, Brazil’s Rare Earths Bet
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Sep 12, 2025 
Nobel laureate Paul Krugman explores economic policies impacting productivity, particularly in relation to immigration. Joined by John Zhang and Ramon Barua Costa, they delve into dynamic pricing models that fluctuate in real time across various industries. The discussion shifts to Brazil's strategic ambitions in rare earth elements, aiming to establish a competitive non-China supply chain, highlighting the geopolitical stakes of this crucial resource in the tech industry.
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Tariffs And Immigration Hurt Living Standards
- Tariffs and stricter immigration enforcement raise U.S. costs and reduce living standards by disrupting complementary labor and supply chains.
- Paul Krugman argues these policies lower productivity and harm native-born workers' real incomes.
Tariff Chaos Damages Investment And Credibility
- Unpredictable, ad-hoc tariffs create economic chaos by making investment decisions highly risky.
- Krugman stresses that variable tariff whims damage business planning and U.S. credibility in trade agreements.
Input Tariffs Raise Manufacturing Costs
- U.S. firms have absorbed much tariff cost so far, but input tariffs raise manufacturers' costs through global supply chains.
- Krugman notes tariffs on inputs can squeeze firms and eventually pass costs to consumers.