Current presidential candidate Elizabeth Warren has warned of a major economic crash in the coming years, per Medium.
In Warren’s post, she warns of an economic crash in the next year or so if the Trump administration doesn’t pass legislation that controls the economy and boosts the middle-class out of debt.
“Warning lights are flashing. Whether it’s this year or next year, the odds of another economic downturn are high — and growing,” Warren said via Medium.
In the post, Warren explains how she sees the manufacturing sector in “recession” and that the country’s current economy is built off the debt of middle-class Americans, as well as corporate debt, which could easily lead to the economy collapsing in a similar fashion to 2008. Similarly, Warren calls out the use of leveraged corporate loans, which are loans given to high risk companies, as a potential economic risk, since the Trump administration has relaxed on 2013 issued lending standards.
To combat the looming crisis, Warren proposed many of the things she’s already proposed on her campaign trail. In regard of household debt, Warren proposes a $15 minimum wage, cancelling up to $50,000 per person in student loan debt, and tuition free college. On the corporate side of things, Warren reintroduced her Green Manufacturing Plan to assist in boosting the manufacturing industry by creating “millions” of jobs and also focusing on the issue of climate change, among many other things.
“The country’s economic foundation is fragile. A single shock could bring it all down,” Warren said via Medium. “And the Trump Administration’s reckless behavior is increasing the odds of just such a shock.”
This isn’t the first time Warren has spoken out about impending threats to the economy. Before the 2008 recession, Warren called out many of the same signs that led to the economic collapse. According to her, not enough people listened.
Moving forward, it doesn’t seem like the Trump administration will adhere to any of these proposed changes, but nonetheless it gives Warren a topic to speak on during her Democratic primary campaign, especially with the second round of primary debates set for July 30 and 31.
Trump has repeatedly touted the strength of the economy, and tweeted about how the current economy is the best the country has ever seen. According to Warren, the positives aren’t reflected in the lives of everyday Americans.
“Go around a room like this. For most people, wages haven’t gone up in a generation and yet the cost of housing, the cost of health care, the cost of childcare, the cost of sending a kid to college have all gone through the roof,” Warren said via Politico after a town hall meeting in May. “The middle class squeeze is real and it has gotten tougher for people over the last few years.”
With the current state of our country reminding Warren of the economy pre-2008, it seems the presidential candidate is doing her best to make sure the country doesn’t go back to the state it was in after the recession in the 2000s.
“Congress and regulators should act immediately to tamp down these threats before it’s too late,” Warren concluded.