{"id":95660,"date":"2025-08-25T10:49:07","date_gmt":"2025-08-25T10:49:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/95660\/"},"modified":"2025-08-25T10:49:07","modified_gmt":"2025-08-25T10:49:07","slug":"paul-krugman-says-1-shaky-thing-stands-between-trump-and-a-recession","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/95660\/","title":{"rendered":"Paul Krugman Says 1 Shaky Thing Stands Between Trump And A Recession"},"content":{"rendered":"<p>Famed economist Paul Krugman argued it\u2019s \u201clikely\u201d the United States \u201cwould be heading into a recession\u201d right now, were it not for the massive financial investment that is currently being made in the development of artificial intelligence.<\/p>\n<p>\u201cStagflation is very much on people\u2019s minds again, for good reason,\u201d the 2008 winner of the Nobel Memorial Prize in Economic Sciences wrote in his <a href=\"https:\/\/paulkrugman.substack.com\/p\/the-economics-of-stagflation-part-10f\" target=\"_blank\" role=\"link\" class=\" js-entry-link cet-external-link\" data-vars-item-name=\"Substack newsletter\" data-vars-item-type=\"text\" data-vars-unit-name=\"68abfcd7e4b0f98d2d958a41\" data-vars-unit-type=\"buzz_body\" data-vars-target-content-id=\"https:\/\/paulkrugman.substack.com\/p\/the-economics-of-stagflation-part-10f\" data-vars-target-content-type=\"url\" data-vars-type=\"web_external_link\" data-vars-subunit-name=\"article_body\" data-vars-subunit-type=\"component\" data-vars-position-in-subunit=\"0\" rel=\"nofollow noopener\">Substack newsletter<\/a> published on Sunday.<\/p>\n<p>Krugman has previously warned of the devastating effect that President <a href=\"https:\/\/www.huffpost.com\/news\/topic\/donald-trump\" rel=\"nofollow noopener\" target=\"_blank\">Donald Trump<\/a>\u2019s tariffs and anti-immigrant crackdowns could have on the U.S. economy.<\/p>\n<p>And now, he said, they are combining and \u201ccreating a significant inflationary shock\u201d and \u201cimposing a significant drag on economic growth.\u201d<\/p>\n<p>If \u201cthe AI boom goes bust,\u201d he cautioned, \u201cthe odds are high that the US economy will be plunged into a recession.\u201d<\/p>\n<p>Last week, Krugman warned how the Trump administration is about to \u201c<a href=\"https:\/\/www.huffpost.com\/entry\/paul-krugman-donald-trump-warning_n_68a6b644e4b0221ae092ae16\" target=\"_blank\" role=\"link\" class=\" js-entry-link cet-internal-link\" data-vars-item-name=\"ICE the economy\" data-vars-item-type=\"text\" data-vars-unit-name=\"68abfcd7e4b0f98d2d958a41\" data-vars-unit-type=\"buzz_body\" data-vars-target-content-id=\"68a6b644e4b0221ae092ae16\" data-vars-target-content-type=\"buzz\" data-vars-type=\"web_internal_link\" data-vars-subunit-name=\"article_body\" data-vars-subunit-type=\"component\" data-vars-position-in-subunit=\"1\" rel=\"nofollow noopener\">ICE the economy<\/a>\u201d with its deportation program, predicting how certain industries that rely on undocumented workers \u2015 like agriculture and meatpacking \u2015 will be decimated by the policy and ultimately lead to further inflation.<\/p>\n","protected":false},"excerpt":{"rendered":"Famed economist Paul Krugman argued it\u2019s \u201clikely\u201d the United States \u201cwould be heading into a recession\u201d right now,&hellip;\n","protected":false},"author":2,"featured_media":95661,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[45,49,48,1376,46,55929],"class_list":{"0":"post-95660","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-ca","10":"tag-canada","11":"tag-donald-trump","12":"tag-economy","13":"tag-paul-krugman"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/95660","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=95660"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/95660\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/95661"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=95660"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=95660"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=95660"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}