China now generates more than twice as much electricity as the United States, solidifying its position as the world’s leading economic powerhouse, according to economist Paul Krugman. Writing this week, Krugman noted that China’s economy has surpassed America’s in real terms when measured at purchasing power parity, highlighting the growing gap between the two nations. The Trump administration’s aggressive stance against renewable energy is drawing scrutiny as a contributing factor to the U.S.’s lagging position. “Yet, rather than having another Sputnik moment, we are now trapped in a reverse Sputnik moment. Rather than acknowledging that the US is in danger of being permanently overtaken by China’s technological and economic prowess, the Trump administration is slashing support for scientific research and attacking education. In the name of defeating the bogeymen of “wokeness” and the “deep state”, this administration is actively opposing progress in critical sectors while giving grifters like the crypto industry everything that they want,” writes Krugman.
Vendetta against renewable energy
Krugman writes that the most obvious example of Trump’s war on a critical sector, and the most consequential for the next decade, is his vendetta against renewable energy. The administration’s “One Big Beautiful Bill” repealed Biden-era tax incentives for renewable energy projects, stalling the nation’s clean energy ambitions. A nearly completed offshore wind farm, capable of powering hundreds of thousands of homes, faces cancellation, while a solar energy project that could have supplied electricity to nearly 2 million households has been scrapped. Additionally, the administration canceled $7 billion in grants for residential solar panels and $8 billion in clean energy funding, primarily targeting projects in Democratic-led states, with reports suggesting tens of billions more in grants may soon be axed.Energy Secretary Chris Wright defended the moves, calling solar power unreliable. “You have to have power when the sun goes behind a cloud and when the sun sets, which it does almost every night,” Wright stated. However, California’s successful integration of solar power through advanced battery storage technology challenges this narrative, demonstrating the feasibility of reliable renewable energy systems.Krugman warns that the U.S. risks falling irreparably behind China by 2028, as the administration’s policies extend beyond energy. “Does this mean that the U.S. is losing the race with China for global leadership? No, I think that race is essentially over. Even if Trump and his team of saboteurs lose power in 2028, everything I see says that by then America will have fallen so far behind that it’s unlikely that we will ever catch up,” concludes Krugman.
