The Jim Acosta Show

Episode: Paul Krugman on Trump's "Affordability" Crisis and the Bulwark's Adrian Carrascuillo reports Kristi Noem on "Thin Ice"
Date: December 8, 2025

Episode Overview

This episode of The Jim Acosta Show dives into two major topics confronting America under the Trump administration: the so-called "affordability" crisis resulting from Trump's tariffs and economic policies, and the state of immigration enforcement, with an inside scoop on DHS Secretary Kristi Noem's vulnerable position in the administration. Host Jim Acosta is joined by Nobel laureate economist Paul Krugman to unpack the implications of recent Trump economic actions and rhetoric, then brings in The Bulwark's immigration reporter Adrian Carrasquillo for updates on DHS leadership and the administration's approach to immigration.

Discussion Highlights & Insights

1. Trump's $12 Billion Bailout for Farmers and the "Affordability Crisis"

• Tariffs' impact on farmers: Acosta opens (00:07) with Trump’s announcement of a $12 billion bailout for farmers, casualties in his ongoing trade wars.
  • Krugman: Tariffs function as indirect taxes on exporters, so farmers are doubly hurt—losing export markets and paying more for key imports like farm equipment and fertilizer.

    "Tariffs are actually taxes on exports, too, indirectly. It always ends up hitting exporters. And so the farmers are suffering." (Paul Krugman, 01:30)

• Bailout size and effectiveness: Krugman notes the amount is insufficient, especially compared to the $16 billion given in 2019 under a less damaging trade war.

  "This is actually... this is kind of chicken feed. I mean, this is not going to be enough to insulate even the farmers." (Paul Krugman, 02:28)

• Myths about tariff revenue: Trump claims tariff income will cover the bailout and even provide $2,000 checks and end income tax—Krugman says these are "fantasy numbers."

  "Trump has basically promised to hand out that money about six different ways. Six times over." (Paul Krugman, 04:37)

• Budget impact: Tariff revenues are a drop in the bucket—possibly $200 billion/year versus a much larger deficit. Multiple promises on the same funds amount to "creative accounting at best."
• Legal issues and future risk: If courts rule tariffs illegal, the government might have to pay the money back, opening massive legal and fiscal headaches.

2. Is This the End of the Free World?

• Acosta transitions (06:51) to Krugman's Substack essay reflecting on America’s retreat from global democratic leadership under “MAGA.”
• Krugman: Historically, the US led alliances upholding democracy and the rule of law, but now top officials display open contempt for these values, especially regarding Europe.

  "In the history of world empires, the Pax Americana was the most benign ever... And now all of a sudden, we have these people in charge... The people in charge don't value any of that." (Paul Krugman, 08:18)

• Changes in foreign policy: The latest national security document downplays rivalry with China and barely mentions Russia’s invasion of Ukraine, while showing animosity towards Europe, which "still believes in the values we're abandoning."

  "It was dripping with contempt and hatred for Europe. And why? Because Europe still believes in the values that we're abandoning." (Paul Krugman, 09:55)

3. Trump, Russia, and China Policy

• China: Krugman speculates the administration isn't engaging seriously because real competition with China is daunting, especially without reliable allies.

  "If we want to talk seriously about taking on China, we don't have the cards unless we're willing to actually rebuild our alliances." (Paul Krugman, 10:52)

• Russia: The right-wing admiration for Putin remains baffling even after Ukraine’s resistance.

  "Russia... have essentially been fought to a standstill by this little country... You would think that they would back off and say maybe we've been backing the wrong horse here, but not. That's, Putin is their kind of guy." (Paul Krugman, 12:17)

4. Supreme Court and Erosion of Rule of Law

• U.S. institutions, especially the Supreme Court, are enabling Trump to fire independent officials, undermining professionalism in government.

  "This is how you become a third world country." (Paul Krugman, 14:19)

• Civil service at risk: Losing job security puts the nation on a path to government staffed by sycophants, not professionals.

5. The Rise of Authoritarian Playbooks and Hope for Resistance

• The administration is openly borrowing tactics from illiberal leaders like Viktor Orban.

  "They looked at how Viktor Orban destroyed democracy in Hungary and they took inspiration. Well, they quite literally did." (Paul Krugman, 15:21)

• Setbacks: Krugman notes Trump's approval is deeply negative, so consolidation of authoritarian power may be harder than elsewhere.

  "Now the question is, can you still consolidate power... when you have a minus 15% approval rating? And there are no historical examples. But we don't know that." (Paul Krugman, 16:13)

6. The Immigration Monstrosity and Kristi Noem on the Brink

• Adrian Carrasquillo reports (17:20) rumors of DHS Secretary Kristi Noem's impending ouster, despite her public loyalty and aggressive media presence.

  "It looks like her time is short, that she's going to be out really soon, is what I heard." (Adrian Carrasquillo, 18:30)

• Stephen Miller's influence: Real power over immigration policy is held by Miller, prioritizing rapid expansion of detention centers (with access to billions in new funding).

  "People like Stephen Miller want... to get this money out the door." (Adrian Carrasquillo, 22:24)

• DHS social media and enforcement: Acosta and Carrasquillo condemn recent media stunts and policies for their cruelty and dehumanization of immigrants, noting pushback even among some Trump voters.

  "The cruelty is the point." (Adrian Carrasquillo, 21:32)

• Potential successors: Names floated include Greg Bovino and Glenn Youngkin, though doubts linger about anyone meeting Miller’s authoritarian standards. Trump’s treatment of female officials surfaces as a possible factor in Noem’s troubles.

7. Ongoing Crackdown and Expansion

• Bovino’s “roadshow” and expanded raids:

  "Now they're in New Orleans. And so in the new year, they're definitely going to expand to new cities. And it's going to be... them going to hit the ground running when we get into January and February." (Adrian Carrasquillo, 26:16)

• Out-of-control enforcement: Scenes of ICE and CBP using pepper spray, smashing windows, intimidating families, and raiding worksites are highlighted as emblematic of policy excess.

  "You and I both see all the viral videos... of like the little kids getting pepper sprayed and the people getting their windows smashed in by ICE." (Jim Acosta, 24:03)

8. Trump vs. Marjorie Taylor Greene — Dysfunction at the Top

• Spat with MTG (32:00): Trump unleashes a bizarre and vitriolic Truth Social post directed at Marjorie Taylor Greene, revealing mounting intra-MAGA infighting and signs of volatility.

  "His nickname for Marjorie Taylor Greene is now Marjorie Trader Brown... He's just lost something on his fastball, hasn't he?" (Jim Acosta, 32:00)

9. Cognitive Decline, Dissembling, and Questions About Trump’s Future

• Boat strike video: Trump first agrees, then refuses to release a controversial video, blaming others and contradicting himself within a week.

  "He, he does not seem to be in full control of his thoughts from one day to the next." (Jim Acosta, 36:10)

• Cognitive fitness: Acosta raises serious questions about Trump's mental acuity and whether he will finish his term.

  "Is Donald Trump going to make it all the way to 2028 as president of the United States? Because it seems to me, week to week, almost every day, we have another example of cognitive decline." (Jim Acosta, 38:07)

Notable Quotes and Memorable Moments

• Krugman on Tariff Policy:

  "The idea that this tariff revenue... gives us money... Trump has basically promised to hand out that money about six different ways. Six times over. It just isn't there." (04:34)

• Krugman on American Hegemony:

  "In the history of world empires, the Pax Americana was the most benign ever." (08:18)

• Carrascuillo on Kristi Noem's Tenure:

  "She does just about everything that they want her to do... But yeah, it looks like her time is short." (19:52)

• Acosta on Trump and Cognitive Decline:

  "Is anybody in the Republican Party gonna help us out here? Because it seems to me what we're seeing from the President of the United States day in and day out is that Donald Trump is losing it." (35:24)

Key Timestamps

• 00:07 – Acosta introduces Trump’s farm bailout, brings in Krugman
• 01:30 – Krugman explains how tariffs are hurting farmers and consumers
• 04:44 – Myth busting: Tariff revenue and Trump's economic promises
• 06:51 – Krugman on U.S. abandonment of global democratic leadership
• 10:02 – Krugman on the administration’s inconsistent approaches to China and Russia
• 13:09 – Supreme Court enables more executive power, threatening rule of law
• 15:05 – Trump’s authoritarian playbook: Taking lessons from Viktor Orban
• 17:20 – Carrasquillo: Kristi Noem “on thin ice” at DHS
• 21:32 – Increasing cruelty of immigration enforcement, public and even some Trump voter repulsion
• 26:16 – Prediction of widened crackdown in more U.S. cities in 2026
• 32:00 – Trump's attack on Marjorie Taylor Greene, signs of MAGA dysfunction
• 35:22 – Trump contradicts himself on releasing boat strike video, Acosta raises mental fitness concerns
• 38:07 – "Does Donald Trump make it all the way to 2028?" – existential questions for the presidency

Tone and Style

The conversation is urgent, unvarnished, and at times biting. Acosta maintains a critical, fact-focused voice, frequently interjecting with skepticism towards Trump rhetoric, concern over government drift toward authoritarianism, and dark humor directed at the administration and MAGA media antics. Krugman provides incisive, even sardonic economic analysis, while Carrasquillo delivers inside reporting with punch and directness.

For Listeners Who Missed the Show

This episode offers a comprehensive and somewhat sobering tour of America’s current challenges under Trump: from the hollow economics of tariffs and deficits, to the undermining of global alliances, rule of law, and democratic norms, all the way to the real-time brutality and dysfunction of the immigration system. The reporting on Kristi Noem’s position gives a rare inside look at White House personnel machinations, and the closing sequence on Trump’s public conduct and cognitive lapses will be of particular interest to anyone following the state of American leadership.

Recommended Actions:

• Read Paul Krugman’s Substack for deeper dives on economic and global themes.
• Follow Adrian Carrasquillo and The Bulwark for real-time reporting on immigration enforcement and policy.
• Stay alert for further shakeups in Trump’s cabinet and the evolution of mass deportation strategy.
• Listen for further signs of instability, both political and personal, within Trump’s inner circle.