Bloomberg Talks

Dr. Paul Krugman Talks Jobs and Economic Policy

9 snips
Jan 10, 2025
Paul Krugman, a Nobel laureate and distinguished professor of economics, delves into the current U.S. economy and the implications of new jobs numbers. He discusses the impact of tariffs and the tension between globalism and nationalism in trade. Krugman highlights challenges in the labor market, especially for small suppliers, while critiquing the integrity of economic data in a politically charged environment. His insights on AI investments and the looming threat of stagflation round out a compelling analysis of America's economic future.
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ADVICE

Question Trump's Trade War

  • Question President-elect Trump's trade war intentions.
  • Inquire about the rationale behind disrupting a seemingly well-performing US economy.
INSIGHT

Tariff Magnitude Matters

  • Low tariff rates, like the current 2-3%, cause minimal economic harm.
  • Significant harm occurs with large tariff increases, like Trump's proposed 25-60%, with losses roughly squaring with the rate.
INSIGHT

Hassett's Influence

  • Kevin Hassett likely won't challenge Trump's tariff obsession.
  • Trump's obsession with tariffs seems unwavering despite advice.
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