Nobel laureate in economics Paul Krugman comments on the U.S. economy

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5 days ago

Economic Abnormalities

Paul Krugman says the U.S. economy is in an abnormal state, with the recent government shutdown delaying the September employment report and leaving policymakers partially blind. He warns that data appearing positive may conceal serious problems. This uncertainty complicates economic assessment and policy response.

Key Manifestations

Krugman identifies three main symptoms. First, a sharp polarization where artificial‑intelligence sectors surge while many other industries stagnate. Second, an employment freeze that leaves job seekers struggling despite a lack of mass layoffs. Third, a K‑shaped growth pattern in which AI‑driven investment fuels gains for high‑income groups while middle and low‑income consumers face mounting hardships.

Overall Outlook

He describes the current trajectory as rapid AI‑driven growth coupled with deepening inequality. The benefits of technological advances are concentrated at the top, leaving broader society behind. This dual trend defines the challenging economic landscape ahead.

Nobel laureate in economics Paul Krugman comments on the U.S. economy

Economic Abnormalities

Key Manifestations

Overall Outlook

Nobel laureate in economics Paul Krugman comments on the U.S. economy