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

Paul Krugman, a Nobel laureate economist and prominent political commentator, has expressed serious concerns about the trajectory of the U.S. Economy under the Trump administration as of 2025. He specifically criticized actions such as the firing of key labor statistics officials and the implementation of tariff policies that increase economic uncertainty. Krugman has drawn parallels between these developments and the economic mismanagement seen in Venezuela, suggesting that such policies could lead to a severe economic downturn or collapse in the U.S. While his warnings are based on observed policy decisions and their potential consequences, it is important to note that these are projections and opinions grounded in economic analysis rather than certainties.

The comparison to Venezuela is metaphorical to highlight risks of authoritarian economic decline rather than a direct equivalence of all conditions.