Economist Paul Krugman destroyed President Donald Trump’s “economic arrogance,” as he called it, in a New York Times op-ed in which he explains how flawed the president’s economic projections appear.
Krugman notes that the Trump administration has based its budget on the belief that the American economy will grow 3-3.5 percent over the next decade, for which he points out there is “no serious analysis behind this optimism.” Rather, Krugman notes, “the number was plugged in to make the fiscal outlook appear better.”
He then laid out all the ways Trump’s fiscal projections appear flawed. For instance, he notes that the Reagan administration did, in fact, see a growth rate of 3.4 percent.
However, “baby boomers were still entering the work force. Now they’re on their way out, and the rise in the working-age population has slowed to a crawl,” Krugman noted. He added, “This demographic shift alone should, other things being equal, subtract around a percentage point from U.S. growth.”
And even though the economy under former President Bill Clinton grew at a rate of 3.7 percent, Krugman attributes that number to Clinton inheriting a weak economy, unlike Trump — despite what he has said about the mess he inherited.
According to Krugman, “Reagan and Clinton inherited depressed economies, with unemployment well over 7 percent. This meant that there was a lot of economic slack, allowing rapid growth as the unemployed went back to work.”
“Today, by contrast, unemployment is under 5 percent, and other indicators suggest an economy close to full employment. This leaves much less scope for rapid growth,” he added.
Krugman later commented, “we have to get real and talk about whose interests are being served,” specifically touching on tax-cutting and deregulation serving only the interests of billionaires.
“[O]n such matters Donald Trump is really no worse than the rest of his party,” Krugman noted. “Unfortunately, he’s also no better.”