Paul Krugman Bashes Trump Scheme To Boost Oil Profits While Stonewalling Post Office Aid

Nobel Prize-winning economist Paul Krugman is attacking President Donald Trump s machinations to boost oil and gas prices amid the job-destroying coronavirus pandemic while reportedly refusing to help the struggling U.S. Postal Service .

Oil-producing nations reached a historic deal Sunday, prodded by Trump, to slash output by 9.7 million gallons a day in a bid to shore up plummeting prices amid the pandemic.

As Trump was reaching out to oil producers, the Postal Service pleaded to Congress for funds as it teeters on the brink of collapse . Yet Trump has threatened to veto the recent $2.2 trillion coronavirus stimulus package if it includes USPS aid, The Washington Post reported .

Krugman wondered on Twitter why Trump is so desperate to raise oil prices, even though America is a net oil importer, which would mean an increase in prices for U.S. consumers.

One answer, he noted, is that oil and gas companies gave 88% of their campaign contributions to Republicans in 2016. Another consideration for Trump is that his favorite autocrats in top oil producers Saudi Arabia and Russia will benefit.

On the other hand, Trump is convinced that the Postal Service is somehow subsidizing deliveries from arch-nemesis Jeff Bezos Amazon , Krugman pointed out. (One Trump critic responding to Krugman on Twitter quipped that oil and gas operations also wont be delivering mail-in ballots for the November election.)

Postal Service workers are also protected by a union, while most oil and gas operations are not unionized, Krugman noted.

The economist wondered if Trump has carefully thought through his strategy and its potential effect on his reelection campaign. The post office is overwhelmingly popular; if it collapses on his watch, it would hurt him, Krugman noted.

The collapse of the Postal Service would also deliver another crushing blow to the economy.

I spoke with the Postmaster General again today. She could not have been more clear:

The Postal Service will collapse without urgent intervention, and it will happen soon.

Weve pleaded with the White House to help. @realDonaldTrump personally directed his staff not to do so. https://t.co/5wPQvbA951

Rep. Gerry Connolly (@GerryConnolly) April 9, 2020","type":"rich","meta":{"author":"Rep. Gerry Connolly","author_url":"https://twitter.com/GerryConnolly","cache_age":86400,"description":"I spoke with the Postmaster General again today. She could not have been more clear: The Postal Service will collapse without urgent intervention, and it will happen soon.Weve pleaded with the White House to help. @realDonaldTrump personally directed his staff not to do so. https://t.co/5wPQvbA951 Rep. Gerry Connolly (@GerryConnolly) April 9, 2020\n\n","options":{"_hide_media":{"label":"Hide photos, videos, and cards","value":false},"_theme":{"value":"","values":{"dark":"Use dark theme"}}},"provider_name":"Twitter","title":"Rep. 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I spoke with the Postmaster General again today. She could not have been more clear:

The Postal Service will collapse without urgent intervention, and it will happen soon.

Weve pleaded with the White House to help. @realDonaldTrump personally directed his staff not to do so. https://t.co/5wPQvbA951
Rep. Gerry Connolly (@GerryConnolly) April 9, 2020

Former Labor Secretary Robert Reich also on Monday slammed the billions of dollars of public money earmarked to bail out private companies in the pandemic while the president showed no concern about the Postal Service.

So let me get this straight: We can afford to give airline companies billions in bailout even when theyve spent billions on stock buybacks, but we cant afford to bail out the postal service?

Robert Reich (@RBReich) April 12, 2020","type":"rich","meta":{"author":"Robert Reich","author_url":"https://twitter.com/RBReich","cache_age":86400,"description":"So let me get this straight: We can afford to give airline companies billions in bailout even when theyve spent billions on stock buybacks, but we cant afford to bail out the postal service? 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So let me get this straight: We can afford to give airline companies billions in bailout even when theyve spent billions on stock buybacks, but we cant afford to bail out the postal service?
Robert Reich (@RBReich) April 12, 2020

Check out Krugmans Twitter thread on the issue here:

Why is Trump so desperate to raise oil prices, even though America is a net oil importer? 1/ https://t.co/AphgqCf00o

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Why is Trump so desperate to raise oil prices, even though America is a net oil importer? 1/ https://t.co/AphgqCf00o
Paul Krugman (@paulkrugman) April 13, 2020

Why is he refusing to help the Post Office, which is in financial crisis? 2/ https://t.co/pMf1KxcWrx

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Why is he refusing to help the Post Office, which is in financial crisis? 2/ https://t.co/pMf1KxcWrx
Paul Krugman (@paulkrugman) April 13, 2020

One answer is that in 2016 oil&gas gave 88% of its contributions to Republicans https://t.co/CmvQ4iESrC while postal unions gave only 12 percent https://t.co/IBckwmxIzv 3/

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One answer is that in 2016 oil&gas gave 88% of its contributions to Republicans https://t.co/CmvQ4iESrC while postal unions gave only 12 percent https://t.co/IBckwmxIzv 3/
Paul Krugman (@paulkrugman) April 13, 2020

And postal workers are overwhelmingly unionized https://t.co/SOBM0DcOb9 while mining, including oil&gas, is basically un-unionized 4/ https://t.co/SSLx1oflhB

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And postal workers are overwhelmingly unionized https://t.co/SOBM0DcOb9 while mining, including oil&gas, is basically un-unionized 4/ https://t.co/SSLx1oflhB
Paul Krugman (@paulkrugman) April 13, 2020

Also, the world's two top oil exporters are Saudi Arabia and Russia, so Trump is helping his favorite autocrats; meanwhile, he believes that the post office is subsidizing Jeff Bezos, whose newspaper reports uncomfortable truths 5/

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Also, the world's two top oil exporters are Saudi Arabia and Russia, so Trump is helping his favorite autocrats; meanwhile, he believes that the post office is subsidizing Jeff Bezos, whose newspaper reports uncomfortable truths 5/
Paul Krugman (@paulkrugman) April 13, 2020

I do wonder, however, if he's thought this through politically. The post office is overwhelmingly popular; if it collapses on his watch, it would hurt him 6/ https://t.co/LmS3i7IQCp

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I do wonder, however, if he's thought this through politically. The post office is overwhelmingly popular; if it collapses on his watch, it would hurt him 6/ https://t.co/LmS3i7IQCp
Paul Krugman (@paulkrugman) April 13, 2020

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