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Trump views 50 years out of date, may trigger disruptive trade war: Paul Krugman

According to him, immediate issue is going to be confrontation not with China, but with Europe as the "steel tariffs" will hit Europe

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Trump is not taking his responsibilities seriously: Paul Krugman. Wikimedia Commons
  • Paul Krugman criticises U.S. President Donald Trump
  • Paul Krugman is a Nobel Prize winner
  • Paul says Trump’ actions can cause a war

Criticising the US President Donald Trump for his protectionists policies, Nobel Laureate Paul Krugman on Saturday accused President Trump of not taking his jobs seriously. Following the protectisists measures taken by the US President, there could be “risks of disruptive trade war”, he said.

President Donald Trump has pledged to avoid any new foreign business deals during his term in office.
President Donald Trump is heavily criticised. Wikimedia Commons

“He does not take the job seriously. He doesn’t say to himself that I am the most important official in the world; I have better do my homework for understanding the issue. ..He just goes that these are my gut feeling and hires people who make him feel good…that is a frightening prospect,” Krugman said responding to a query on his perception on Trump. On the economic issues President Trump’s gut feelings are “protectionist” and his views of America were “50 years out of date”.

“He wants America a heavy industrial country in the way it was when he was a young man. That is not just going to happen but he attempts to make it happen, which is extremely disruptive to America and to the global as a whole,” Nobel Laureate said. Krugman said he was until recently optimistic that Trump’s protectionist policies would not see the light of the day.

“Until about two weeks ago, I was quite optimistic that it would not happen. The reason was not because the President would get good economic advice but because the US businesses are invested in a globalised economy. All the investments the businesses have made is based upon the assumptions that the open trading system would continue. There is an enormous amount of fiscal capital and a large number of jobs are dependent on these value chains,” he said at the News18 Rising India Summit here.

Also Read: Trump Not Backing Down on Steel, Aluminum Tariffs

Krugman further said: “I had assumed the influence of these business communities would be sufficient… that it would not happen. I am less optimistic now…we have seen reasonably sensible Economic Council Head was fired, completely irrational tariff (was) imposed on steel and aluminium.”

The President also called for more mental institutions and hospitals in addition to the idea of arming teachers.
Krugman says these actions of President can cause a trade war. Wikimedia Commons

According to him, immediate issue is going to be confrontation not with China, but with Europe as the “steel tariffs” will hit Europe. He said there are possible risks of “disruptive global trade war”.

Speaking on Chinese economy he said, “China is a financial crisis waiting to happen. China is a widely unbalanced economy…the country is sustaining itself with a credit bubble that is waiting to burst…There is a significant risk of Chinese bubble burst.”

Next Story

White House in Support of Trump’s National Emergency Declaration

Trump said he declared the national emergency because he was unhappy with the amount of money Congress authorized.

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President Donald Trump speaks at the White House in Washington, to declare a national emergency in order to build a wall along the southern border, Feb. 15, 2019. VOA

The White House is defending President Donald Trump’s declaration of a national emergency at the U.S.-Mexico border as multiple states prepare to file legal challenges and Democrats in Congress plan to vote their disapproval.

“He could choose to ignore this crisis, but he chose not to,” Trump adviser Stephen Miller, an immigration hardliner, told Fox News Sunday.

Miller assailed former Republican President George W. Bush for what he called an “astonishing betrayal” of the U.S. nearly two decades ago when four times as many immigrants were illegally entering the United States as now. But Miller said the “bottom line” is that “you cannot conceive of a strong nation without a secure border.”

He said Trump’s action is “defending our own borders.” He illegal immigration “is a threat in our country.”

Miller said Trump’s actions were justified under a 1976 law giving presidents authority to declare national emergencies, although none of the 59 declared since then has involved instances when a president has attempted to override congressional refusal to approve funding for a specific proposal.

Trump declared the national emergency on Friday to circumvent Congress, which had refused his request for $5.7 billion in wall funding, even as it approved $1.375 billion for barriers along about 90 kilometers of the 3,200-kilometer border. Trump plans to tap more than $8 billion in government funds authorized for other projects the build the wall, although lawsuits challenging the action are already being filed to block his transfer of money.

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Border Patrol agent Vincent Pirro looks on near a border wall that separates the cities of Tijuana, Mexico, and San Diego, Feb. 5, 2019, in San Diego. VOA

California Attorney General Xavier Becerra told ABC’s This Week that his state and others would “definitely and imminently” file a legal challenge, arguing that people all over the United States would be harmed by Trump’s move because the diverted money would not be spent on needed services.

“Typically our presidents have focused on issues where the national interests are clearly at stake,” Becerra said about previous national emergency declarations. “The national interests are not at stake here. We have the lowest level of entries into the country by those who don’t have permission than we’ve had in some 20 years.”

Acting U.S. Defense Secretary Patrick Shanahan said he thinks he has “a lot of discretion” in deciding which funds previously allocated for defense needs can instead be used to build a border wall. “You can trust the numbers in terms of the potential. Then you gotta marry it up with where the money would be spent.” But he said money designated for military housing would not be spent on the wall.

Trump said he declared the national emergency because he was unhappy with the amount of money Congress authorized.

“I want to do it faster,” he said. “I could do the wall over a longer period of time. I didn’t need to do this. But I’d rather do it much faster.”

Trump’s staunchest critics, including Democrats who have announced they are running against him next year and other lawmakers, have attacked his national emergency declaration as an end-run around the constitutional provision that U.S. funding authorization lies with Congress and noted that he said that he did not need to take action.

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Trump declared the national emergency on Friday to circumvent Congress, which had refused his request for $5.7 billion in wall funding. VOA

Democratic Congressman Adam Schiff, chairman of the House Intelligence Committee, told CNN, “If we give away, if we surrender the power of the purse… there will be little check and no balance left. It’ll not be a separation of powers anymore, just a separation of parties.”

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Journalist Bob Woodward, who chronicled the first year of the Trump presidency in a best-selling book called “Fear,” told Fox News he believes Trump made the national emergency declaration because “he looks strong. He looks tough to lots of people.”

Trump centered much of his successful 2016 campaign for the White House on a vow to build the wall and make Mexico pay for it. He long since abandoned direct payment from Mexico, when its leaders rejected the idea, and instead sought congressional approval of the U.S. taxpayer funding. (VOA)