Has Trumphoria Finally Hit a Wall?
This opinion from Paul Krugman was classified as a view from the left because it contained these types of arguments:
- It is very difficult to use market fluctuations to predict future economic movement. That said, recent market turmoil serves as a good reminder to take a "hard look at the economy's prospects".
- There are good reasons to believe that US economic growth will slow to around 1.5% (about half the rate of the 3% growth promised by Trump). Additionally, there are indications that assets are overvalued.
- Slow growth and high asset values alone wouldn't be catastrophic if we could trust policymakers to react in an effective manner. However, with a new, unproven Federal Reserve chair and a highly uninformed Secretary of the Treasury, these trends could lead to big trouble.