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Krugman: Trump’s $1.4 B Crypto Scheme Threatens US Economy

7/3/2026

Summary

Story summary

Economist Paul Krugman warned that President Donald Trump’s $1.4 billion cryptocurrency profit scheme could destabilize the U.S. economy.
Economist Paul Krugman said the scheme ties business success to political connections rather than genuine value creation.
Economist Paul Krugman argued that this shift away from rewarding productivity undermines the engine of economic growth.
Economist Paul Krugman compared the situation to Ferdinand Marcos’s crony capitalism, which he said devastated the Philippine economy.

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Story summary

Economist Paul Krugman warned that President Donald Trump’s $1.4 billion cryptocurrency profit scheme could destabilize the U.S. economy.
Economist Paul Krugman said the scheme ties business success to political connections rather than genuine value creation.
Economist Paul Krugman argued that this shift away from rewarding productivity undermines the engine of economic growth.
Economist Paul Krugman compared the situation to Ferdinand Marcos’s crony capitalism, which he said devastated the Philippine economy.