Nobel laureate: The US economy is in an abnormal state, and development in key areas is hindered
on October 22 local time, Nobel laureate in economics Paul Krugman wrote on the American subscription platform Substack, "At present, the U.S. economy is in an abnormal state on multiple levels.
The most direct problem is that the government shutdown has delayed the release of the September employment report, and policymakers are in a state of 'partial blind judgment'." He said that the U.S. economic data seems acceptable on the surface, but a deeper analysis will reveal that many objective indicators show that the U.S. economy is flashing red lights.
He said that this "abnormal" state is first reflected in the severe differentiation of the economy: the field of artificial intelligence is booming, while other fields are stagnant.
Secondly, the economy is in a "frozen" state in many aspects: although there has not yet been massive layoffs, it is difficult for the unemployed or those who have just entered the labor market to find new jobs.
Third, although investment in the field of artificial intelligence is driving economic growth, this growth is showing "K-shaped differentiation," and the signal that middle- and low-income consumers are in distress is already very clear.
