Vice President Kamala Harris said mainstream economists believe her economic plan would grow the economy and Donald Trump’s would shrink it.
Goldman Sachs, in an analyst note last week, said exactly that: Trump’s economic policies — particularly on trade — would cause America’s economy to shrink by a bit in 2025. By contrast, Harris’ economic policy proposals would grow the economy by a marginal amount next year, Goldman Sachs predicted.
Trump has proposed 10% to 20% tariffs on most items imported to the United States except Chinese goods — which would get a 60% tariff. That would cost Americans $2,600 a year, according to the Peterson Institute for International Economics.
And Trump’s proposal to deport 10 million to 20 million immigrants would be an “inflation shock.” Even a tenth of that proposal would lift inflation by 1.3 percentage points after three years, according to research presented at the Peterson Institute for International Economics by Australian economist Warwick McKibbin. Gross domestic product, the broadest measure of the US economy, would be 2.1 percentage points lower with that many deportations — a dramatic decrease.
Harris’ proposals, by contrast, are more standard fare and would keep the economy on pace, most mainstream economists say.
__________________
|