'Nobel Laureate' Acemoglu: "U.S. Democracy Deteriorated Under Trump’s Second Term... Korea’s Recovery Is Impressive" [ASSA 2026]

Annual Meeting of the American Economic Association (ASSA) 2026
Interview with MIT Professor Daron Acemoglu

Daron Acemoglu, Nobel laureate in economics and Professor of Economics at the Massachusetts Institute of Technology (MIT), assessed that democracy has significantly regressed in the United States during the second term of the Donald Trump administration.

Daron Acemoglu, Professor of Economics at the Massachusetts Institute of Technology (MIT), spoke at the Annual Meeting of the American Economic Association (ASSA) 2026 held on the 4th (local time) in Philadelphia, Pennsylvania, USA. Philadelphia=Photo by Kwon Haeyoung

On the 4th (local time), at the Annual Meeting of the American Economic Association (ASSA) 2026 held in Philadelphia, Acemoglu met with Korean journalists and, when asked whether the political system under the second Trump administration is contributing to economic development, responded, "According to indicators from Freedom House and the Varieties of Democracy Institute (V-Dem), American democracy is deteriorating significantly."

Freedom House in the United States and V-Dem in Sweden are organizations that quantify and publish the level of democratic maturity in various countries.

Professor Acemoglu stated, "The deterioration of American democracy is actually affecting not only domestic policy but also foreign policy." However, despite concerns over the weakening of democracy, there has not been a direct causal relationship observed between this and the recent robust growth of the U.S. economy.

Regarding this, he explained, "The factors and circumstances behind growth are complex," and added, "The recent growth in the United States relies heavily on investment in artificial intelligence (AI), so it is difficult to view it as entirely sustainable growth."

Professor Acemoglu also commented on the political situation and business environment in Korea. In response to concerns that ongoing domestic political conflicts following the periods of martial law and impeachment have dampened business activities, he said, "Political uncertainty affects investment in every country."

However, he positively evaluated the efforts to restore democracy demonstrated by Korean society. He remarked, "What has happened in Korea was very impressive," and added, "This marks a turning point that shows perceptions of democracy are changing across East Asia."