Economist Paul Krugman believes that a very corrupt practice is going unnoticed and unchallenged under the Trump Administration. Krugman was the recipient of the Nobel Memorial Prize in Economics in 2008. He received the honor for his contributions to the new trade theory and new economic geography. The economist has been critical of Trump in the past, especially with his stance on Greenland.
Paul Krugman came on our pod and discuss this pretty brilliantly, the core point is that they think fewer jobs *is good* if it somehow means fewer immigrants. Undercuts the entire MAGA worldview, which holds that 1 deportation = a job for an American.https://t.co/tZsgLsPw0V pic.twitter.com/5VgXD4xeHz
— . (@GregTSargent) March 6, 2026
Amidst the various scandals and pressures plaguing the Trump Administration, Krugman believes that Donald Trump’s tendency to allow friendly companies to get government contracts is not being challenged. Krugman outlined the issue on his Substack, labeling the practice another aspect of crony capitalism.
On his Substack, he wrote, “If this practice becomes the norm, as it surely will if these people remain in power, it will waste money because the government is denying contracts to vendors who offer the best value but aren’t sufficiently MAGA. It will also further corrupt our politics, as businesses feel the need to be demonstratively pro-Trump if they want federal contracts.”
Krugman has stated that these companies would likely serve the interests of the administration and the Trump family more than anything else. He compared this practice to the criticisms that conservatives leveled at DEI practices. Diversity, Equity, and Inclusion initiatives were often targeted by Republicans as a Democratic practice that refused to give jobs to those suited for it in favor of appearing inclusive. Krugman argues that MAGA is doing something similar. He suggests that they are giving out government contracts to those who can project undying loyalty. This is being done instead of giving contracts to companies that are best at what they do, but might not be MAGA-aligned.
This highlighted a larger ongoing issue. The United States is at war with Iran, and the military needs equipment replacements. Further, oil prices are already taking a hit, and will continue to jump out of pocket as the war with Iran continues. Krugman highlighted that if the roles were reversed, and a Democratic government was actively not allowing certain companies to work with them over ideology, Republicans would be on the streets, calling Democrats treasonous.
Nick Fuentes: “This administration is wicked, it’s evil, it’s doing evil things. It’s covering up the Epstein files. It’s prosecuting a war in Iran. It’s lying to us about the war, it sold it under false pretenses. There’s all kinds of embezzlement and corruption.” pic.twitter.com/ClXJcEh68b
— Cesspool (@CesspoolOnline) March 10, 2026
Krugman’s assessment reveals wide issues that the administration is currently facing as well. The focus has largely been on the various scandals that Trump’s inner circle finds itself in. Following this, the Epstein Files were in the public spotlight, which derailed all other criticisms that were being leveled at the government. Now, with the Iran War taking up new cycles, the former issues are on the cusp of being completely buried, if not unaddressed.
