President Trump’s tariff-happy trade war with some of the United States’ major commerce partners, including China, is often considered a boogeyman as fears of a global recession dance in the heads of economists and investors. But Nobel Prize-winning economist Paul Krugman doesn’t lay the entire onus at the foot of the Oval Office.
Instead, Krugman said that the trade war is just “one ingredient” amid a smorgasbord board of reasons for what could be a looming international economic downturn. He wrote something similar in 2018 when he argued that there was nothing as “obvious” as the housing bubble to predict a forthcoming crash, but that there were several mid-sized bubbles that could lead to a tumble.
…the petering out of the tax cut; tensions in Asia, etc. etc. The inverted yield curve is NOT an independent cause, but rather a reflection of worries about all this. Still hard to see another 2008. But another 1990-91 looking q possible 3/
— Paul Krugman (@paulkrugman) August 14, 2019
Krugman isn’t really defending the White House’s policies — in fact, back in 2016, before Trump was elected, he predicted that his presidency would lead to an “endless recession.” …read more
Source:: The Week – Business