Another economic crisis is imminent and “warning lights are flashing,” according to presidential candidate and Massachusetts Sen. Elizabeth Warren (D-MA), who offered a plan Monday to address the alleged economic threat.
Warren voiced her concerns on the “serious warning signs in the economy” in a Medium post titled “The Coming Economic Crash — And How to Stop It.”
She described herself as ahead of the curve on the economic crisis of 2008, but said the “people with the power to stop the crisis ” did not listen. This, she implied, could be happening again.
When I look at the economy today, I see a lot to worry about again. I see a manufacturing sector in recession. I see a precarious economy that is built on debt — both household debt and corporate debt — and that is vulnerable to shocks. And I see a number of serious shocks on the horizon that could cause our economy’s shaky foundation to crumble.
Warren listed a few ideas designed to address what she considers this looming economic crisis, many of which she has articulated before. She said it is crucial to reduce household debt and plans to do so, in part, by raising the minimum wage to $15 an hour– a move which the Congressional Budget Office found could result in up to 3.7 million workers losing their jobs, although the CBO’s median estimate is 1.3 million.
“The CBO also found that the hike would raise consumer prices and slightly shrink the country’s economic output by reducing capital investment,” Breitbart News reported.
Warren would also erase the majority of student debt and offer “free” college and “free” universal childcare. Her sweeping debt cancellation plan alone would cost the U.S. roughly $640 billion, putting another significant strain on taxpayer wallets.
The presidential candidate also teased her Green Manufacturing Plan, which will “mobilize our industrial base by making a $2 trillion investment in American green research, manufacturing, and exporting over the next decade.” She believes her Green Manufacturing plan will create over a million “high quality” jobs, which will ultimately help address what she described as the “existential threat of climate change.”
“Warning lights are flashing. Whether it’s this year or next year, the odds of another economic downturn are high — and growing,” Warren warned. “Congress and regulators should act immediately to tamp down these threats before it’s too late.”
The U.S. economy has thrived under the Trump administration, and it remains one of the president’s strong points. During an exclusive Oval Office interview with Breitbart News in March, Trump named the economy as his biggest accomplishment, largely attributing it to his success of deregulating.
As Breitbart News reported:
“Maybe the economy,” Trump replied when Breitbart News Washington Political Editor Matthew Boyle asked him what his biggest accomplishment was in his view. “Look at jobs. Best jobs record in 60 years. Best individual records for Asians, for African-Americans, for Hispanics ever. I think the economy—but I think a lot of things. Regulations—I think regulations led to the economy, the tax cuts. Even in the tax cuts we got ANWR. Nobody for 50 years could get it and I got it approved—you know, the biggest drilling site. So we’ve done a good job—so in theory it’s easier because I can say, ‘look what I’ve done’ as opposed to the first time where I said, ‘I can do this.’”
The unemployment rate is currently sitting at 3.7 percent– a slight increase from 3.6 percent. However, the slight uptick is not necessarily a bad thing.
“At 3.7 percent, the unemployment rate is close to multi-decade lows. And the reason the rate rose slightly is that the number of Americans looking for work picked up,” Breitbart News reported.
The U.S. economy grew 3.2 percent in the first quarter of 2019, smashing expectations and prompting critics to unload on Obama, who openly mocked Trump’s vision for economic prosperity in the past.
“What magic wand do you have?” Obama asked during a 2016 PBS town hall.
— PBS NewsHour (@NewsHour) June 2, 2016
“Well Abracadabra buddy… I guess there is a magic wand for that!!!” Donald Trump Jr. exclaimed in a tweet last month.
Well Abracadabra buddy… I guess there is a magic wand for that!!! @realdonaldtrump has it and is using it for all Americans as promised. It just takes a real leader, one with experience and guts. #magic #teamtrump #flgop #gop pic.twitter.com/r2VpkA58Gd
— Donald Trump Jr. (@DonaldJTrumpJr) June 21, 2019