Trump called India’s economy ‘dead’: A top American economist just buried that claim

Calling India’s economy “dead” is not just wrong — it’s “very Trumpian,” says Alan Blinder, former Vice Chair of the U.S. Federal Reserve, who warns that such rhetoric, paired with aggressive tariffs, could do real damage to both U.S. credibility and the global economy.

In an interview with The Economic Times, Blinder sharply criticized Donald Trump’s economic worldview, starting with the former president’s recent dismissal of India’s economy. “If you went back a few decades, maybe you could use that euphemism — but certainly not now,” said Blinder. “India has been growing fast.”

Beyond rhetoric, Blinder warned that Trump’s economic policies — particularly his tariff-heavy approach — are already exerting downward pressure on the U.S. economy. “Tariffs are taxes. They’re sales taxes targeted at foreign goods, which makes them contractionary. They push up prices and reduce consumer purchasing power,” he said.

Blinder also linked Trump's immigration crackdowns to long-term structural risks. With a shrinking labor force, GDP growth could slow further. “If you have a given amount of demand growth and the labor force isn’t keeping pace, growth slows — and could even go negative,” he noted.

Trump’s recent firing of the U.S. Bureau of Labor Statistics (BLS) chief drew especially strong criticism. “To suggest BLS data was rigged to hurt Trump politically is ludicrous — and actually quite evil,” Blinder said, calling the BLS “possibly the most outstanding statistical agency in the world.”

On Trump’s claim that tariffs will boost U.S. productivity, Blinder pushed back. “You might help a small protected sector like steel, but you hurt the much larger industries that rely on it. That’s not a path to growth — it’s a net economic loss.”

Blinder also expressed deep concern for the broader future of global trade. “For 70 years, the U.S. led the push for open trade. Now we’re retreating. If this continues, the damage will be lasting — and someone else will have to lead.”