Renowned economist predicts Trump's mistakes will impact U.S. credibility

Nobel Prize-winning economist Paul Krugman warned damage from President Donald Trump's failed Iran war will outlast his presidency, leaving America diminished globally for years.

In an interview with The New Republic's Greg Sargent on his "Daily Blast" podcast, Krugman dismissed Trump's victory claims as detached from reality and deemed Iran the winner.

"Iran is in a much stronger position and the U.S. in a much weaker position than before the war started," he said.

Krugman characterized the ceasefire deal as vastly inferior to Former President Barack Obama's nuclear agreement, noting the conflict cost lives and exposed American power limits.

Krugman also challenged Trump's economic boasts, citing slower job growth than Former President Joe Biden's final years, flat unemployment, and lower real wages due to accumulated inflation.

The famed economist argued stock market gains reflect a global rally, not Trump-specific policies.

Most critically, Krugman warned the erosion of American credibility — from abandoning agreements, to allies questioning U.S. reliability — he said, "It took generations to build the reputation of America. You don’t get that back unless you give us three generations of good governance from here on in."

He also described Trump as experiencing a steep mental decline, desperate for legacy validation.

"Everything Trump touches turns to crud," Krugman said.

Watch the video below.