Trump's 'Performative' Tweets Don't Change Law, Says Economist Paul Krugman, Calling Credit Card Rate Cap As 'Charade'

Core Viewpoint - Nobel laureate Paul Krugman criticizes President Trump's announcement of a 10% cap on credit card interest rates as a politically motivated "charade" lacking legal authority [1][2]. Group 1: Performance and Legality - Krugman describes Trump's declaration as "performative," emphasizing that a post on Truth Social does not have the legal power to change financial regulations [2]. - He characterizes Trump as a "would-be price controller" who prefers to govern through edicts rather than legislative processes [2]. Group 2: Historical Context and Ideology - Krugman contrasts Trump with Richard Nixon, noting that Nixon implemented price controls through legitimate legislation, while Trump shows no interest in substantive actions [3]. - The economist points out that Trump's approach reveals a lack of consistent ideology, describing him as "utterly transactional" and willing to abandon free-market principles for political gain [4]. Group 3: Administration's Track Record - Krugman highlights the contradiction in Trump's concern for borrowers, citing his administration's efforts against the Consumer Financial Protection Bureau (CFPB) [5][6]. - He notes that Trump's Budget Director previously attempted to dismantle the CFPB, indicating that Trump's motives are cynical [6]. Group 4: Economic Solutions - While acknowledging that credit card rates are unfair and disconnected from supply and demand, Krugman argues that the solution lies in enforcing existing laws rather than impulsive executive actions [7]. - He advises Democrats to avoid legitimizing Trump's "charade" and instead focus on restoring the CFPB's funding and independence to provide real relief for American families [7].