A new report by the highly respected credit agency, Moody’s, has determined that a Donald Trump presidency would be a colossal economic disaster. Given Trump’s utter lack of detailed policy proposals and wild promises to rupture trade deals and impose tariffs on other nations, one might not be very surprised at this assessment, but it is useful to have the actual numbers on hand to give anti-Trump arguments a little more weight.
Moody’s predicts that a Trump presidency would send our nation right back into a recession, killing 3.5 million jobs and sending the unemployment rate above 7%. “Broadly, Mr. Trump’s economic proposals will result in a more isolated U.S. economy. Cross-border trade and immigration will be significantly diminished, and with less trade and immigration, foreign direct investment will also be reduced. Driven largely by these factors, the economy will be significantly weaker if Mr. Trump’s economic proposals are adopted… During Mr. Trump’s presidency, the average American household’s after-inflation income will stagnate, and stock prices and real house values will decline.”
The fallout of a Trump economy would fall squarely on the American middle class – while the richest Americans, like Trump, will make off like bandits. A universal theme to all the economic plans proposed by Republican candidates, the minor tax breaks given to the middle class are made entirely irrelevant by the giant cuts handed to the ultrawealthy and the job losses that would be accompany them.
Trump’s plan would also send the federal deficit into the stratosphere, as the loss of tax income from his reckless cuts would require drastic increases in federal borrowing to make up for the discrepancy, as the reports notes: “His tax and spending proposals will result in very large deficits and a much higher debt load. A future Congress may be able to rein in this profligacy, but it will not be easy, as there is a gulf between what he says he wants on taxes and spending and what it will take to make the budget arithmetic work.”
In case you needed any more proof that Donald Trump is a clear and present danger to the United States of America, this report should be evidence enough. But let’s not simply pile all the blame on Mr. Trump. Pretty much any of the proposals put forth by Trump’s competitors – and the current Speaker of the House’s proposed agenda for the next fiscal year – are entirely divorced from economic reality.
Crafted with an ideological fervor and an extremist intolerance for heterodoxy, the Republican Party’s economic plan for America is to sacrifice the middle class on the altar of neoliberalism, discarding all the regulations and worker protections that put a man on the moon and made us a global superpower in favor in order to funnel all of America’s wealth to the elites – and to fulfill capitalism’s insatiable and unsustainable demands for constant growth. For the sake of our nation and our children’s futures, it is critical we don’t let these austerity zealots and economic illiterati take control of the White House and repeat the catastrophes of the Bush years.