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Trump views 50 years out of date, may trigger disruptive trade war: Paul Krugman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 On the economic issues President Trump’s gut feelings are “protectionist” and his views of America were “50 years out of date”.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.”

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U.S. President Donald Trump Vetoes Measure to End U..S Involvement in Yemen War

ump issued his first veto last month on legislation related to immigration. Trump had declared a national emergency so he could use more money to construct a border wall. Congress voted to block the emergency declaration and Trump vetoed that measure.

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Men inspect the site of an airstrike by Saudi-led coalition in Sanaa, Yemen, April 10, 2019. VOA

President Donald Trump on Wednesday vetoed a bill passed by Congress to end U.S. military assistance in Saudi Arabia’s war in Yemen.

In a break with the president, Congress voted for the first time earlier this month to invoke the War Powers Resolution to try to stop U.S. involvement in a foreign conflict.

The veto — the second in Trump’s presidency — was expected. Congress lacks the votes to override him.

“This resolution is an unnecessary, dangerous attempt to weaken my constitutional authorities, endangering the lives of American citizens and brave service members, both today and in the future,” Trump wrote in explaining his veto.

Congress has grown uneasy with Trump’s close relationship with Saudi Arabia as he tries to further isolate Iran, a regional rival.

Many lawmakers also criticized the president for not condemning Saudi Arabia for the killing of Jamal Khashoggi, a Saudi who lived in the United States and had written critically about the kingdom. Khashoggi went into the Saudi consulate in Istanbul last October and never came out. Intelligence agencies said Saudi Crown Prince Mohammed bin Salman was complicit in the killing.

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Congress has grown uneasy with Trump’s close relationship with Saudi Arabia as he tries to further isolate Iran, a regional rival. VOA

The U.S. provides billions of dollars of arms to the Saudi-led coalition fighting against Iran-backed rebels in Yemen. Members of Congress have expressed concern about the thousands of civilians killed in coalition airstrikes since the conflict began in 2014. The fighting in the Arab world’s poorest country also has left millions suffering from food and medical care shortages and has pushed the country to the brink of famine.

House approval of the resolution came earlier this month on a 247-175 vote. The Senate vote last month was 54-46.

Democratic Rep. Eliot Engel of New York, chairman of the House Foreign Affairs Committee, voted to end U.S. military assistance to the war, saying the humanitarian crisis in Yemen triggered “demands moral leadership.”

Donald Trump
President Donald Trump on Wednesday vetoed a bill passed by Congress to end U.S. military assistance in Saudi Arabia’s war in Yemen. VOA

The top Republican on the committee, Rep. Michael McCaul of Texas, acknowledged the dire situation in Yemen for civilians, but spoke out in opposition to the bill. McCaul said it was an abuse of the War Powers Resolution and predicted it could disrupt U.S. security cooperation agreements with more than 100 countries.

Also Read: Despite Tariff War With U.S, China’s Economic Growth is Steady

Trump issued his first veto last month on legislation related to immigration. Trump had declared a national emergency so he could use more money to construct a border wall. Congress voted to block the emergency declaration and Trump vetoed that measure. (VOA)