Nobel-winning economist Paul Krugman warns the US faces Venezuela-style collapse.

Paul Krugman, a Nobel laureate economist and prominent commentator, has expressed serious concerns about the trajectory of the U.S. Economy and political environment under President Donald Trump's administration as of 2025. He specifically criticized actions such as firing key economic analysts and implementing tariff policies that increase uncertainty and market volatility. Krugman has drawn parallels between these developments and the economic mismanagement and authoritarian tendencies that contributed to Venezuela's severe economic collapse.

While his warnings are based on observed policy decisions and their potential consequences, it is important to note that these are projections and interpretations rather than certainties. The comparison to Venezuela serves as a cautionary analogy highlighting risks of economic decline and democratic erosion rather than a definitive prediction that the U.S. Will experience an identical collapse.