A Nobel Prize-winning economist has suggested Donald Trump is "gaslighting" people over an economic issue that some may not have even noticed.
Paul Krugman wrote that the president is massaging figures on the cost of living crisis but also has kept poor employment figures away from the spotlight. Writing in his Substack, the award-winning economist said the boastful speeches from Trump on "nonexistent success" will not work.
He wrote, "So Trump’s plan to create manly jobs has, predictably, been a bust — a bust as complete in its way as his failure to reduce prices. The only difference is that in the case of jobs he actually tried to do something. But what he did was counterproductive."
"No doubt Trump will continue to give speeches boasting about nonexistent success, telling voters that we have the hottest economy in world history, etc. But his attempt to gaslight the nation about jobs will go no better than his gaslighting on the cost of living."
Krugman would go on to suggest the economic shortcomings are solely down to the administration failing to "do the math" on what the tariff plan would do for the economy.
The Nobel Prize winner wrote, "Fundamentally, Trump and those who have his ear, especially Peter Navarro, his trade czar, made two big mistakes. First, they didn’t do the math. Second, they failed to understand the nature of modern international trade."
"When I say that they didn’t do the math, I mean that as far as I can tell nobody with Trump’s ear made any effort to estimate how many U.S. manufacturing jobs would be created even if the tariffs had eliminated U.S. trade deficits (which they were never going to do.)"
"Moreover, the tariffs have not made a significant dent in the trade deficit. In fact, the deficit was bigger in the first 9 months of 2025 than during the corresponding period in 2024. Why? Because international trade is very different in 2025 from what it was in the days of William McKinley, whose tariffs Trump admires."
Further analysis from political commentator John Casey suggested Trump is refusing to face the reality of his economic woes. He wrote, "Trump’s governing style reflects this refusal to face reality, with consequences stemming from deadlines passed and protections lapsed, with the indifferent refrain that 'things won’t be that bad.'"