Krugman Warning Trump Over BLS Firing Sparks Alarm on Economic Integrit

Economist Paul Krugman issued a grave warning after President Donald Trump abruptly fired Dr. Erika McEntarfer, the head of the Bureau of Labor Statistics (BLS). Trump accused her, without providing evidence, of falsifying a weak jobs report. Krugman believes this move signals a potential threat to the core of U.S. economic governance.

“The BLS may not be a household phrase, but it is absolutely critical,” Krugman told MSNBC’s Ari Melber. He emphasized that every key decision related to the U.S. economy depends on the accuracy and reliability of this data.

Data Manipulation Could Spark Economic Crisis

Krugman warned that tampering with official statistics can cause serious damage. “If you start to corrupt those numbers, bad things start happening,” he said. The Nobel laureate stressed that it’s not just a political maneuver—it undermines sound policymaking.

He cited historical cases of hyperinflation in countries that forced their statistical agencies to publish only positive numbers. “They start reporting nothing but puppies and rainbows,” he said. By the time reality is acknowledged, inflation is already spiraling out of control—sometimes reaching 80%.

A Known Pattern Playing Out at Home

Krugman emphasized that this kind of political interference has occurred in multiple countries before. However, he expressed surprise at how quickly it is unfolding in the U.S.

“This is the playbook,” he repeated. “We’ve seen it many, many times. And now I have to say, faster even than I expected, it’s come to America.”