How the Economic Crisis Will Affect the 2024 Election

Welcome back to the channel, everyone. Today is part two of our presidential comparison, and that's helping you get educated on the issues that are easily lost in today's media. Now, Donald Trump and Kamala Harris bring different approaches to the table, and understanding their economic plans, I am sure, will help you see where our economy might be headed.

My goal is simple. I want to strip away the hype and take an honest, clear-eyed look at the policies of the leading candidates. By the end of this video, you'll have a better understanding of where each candidate stands on the economy so that you can make a more informed decision when you reach the ballot box.

I want to book in this show with the stats of our economy strictly from a financial viewpoint. My reasoning is simple: the policies of Kamala Harris or Donald Trump will certainly affect our economy. Therefore, giving you the current state of our financial condition will help you better understand the short and long-term implications of policies from either candidate.

Let's do this by having a look at the United States debt clock. Now, you can find this at usdebtclock.org. It's a free service, and it's a great resource if you like to see things through the lens of numbers.

Let's start with US federal spending. The current fiscal year, it's $7.1 trillion. That's over 12 months, folks. Now, the revenue from taxes in that same period is just $5 trillion. We've spent $2 trillion beyond what was budgeted. That's a huge amount of money, and that adds to the $35 trillion of debt that I've spoke of first.

Now, what's the interest on that debt? Well, currently it's about 9 $134 billion every year. That's almost a trillion dollars a year, interest cost alone. That doesn't touch the debt.

And then what about unfunded liabilities? This is one that nobody's talking about. Our unfunded liabilities, things like Social Security, disability, other benefit programs, we're talking $200 trillion. These are striking numbers, and neither candidate, nor any president for that matter that I can remember, is dealing with this enormous debt. Now, more on this later.

Right now, let's get into the current candidates. We'll start with Donald Trump. Now, he's known for his America First stance, and Trump's economic approach, it's always focused heavily on tax cuts, deregulation and trade renegotiation.

Let's talk tax cuts for a minute. During his presidency, Donald Trump pushed for significant tax reforms. He slashed corporate taxes from 35% to 21%, and his argument was this would boost investments, spur job growth and keep businesses competitive on the global stage. Trump also believes that lower taxes at the corporate level encourages more business in the United States, and that means more jobs and better economy without raising taxes.

Trump also believes in deregulation, so his administration during his first term rolled back numerous regulations, particularly in the energy sector. He believed that reducing government intervention would allow businesses to thrive and drive more economic growth. His plan going into 2025, should he be elected, would be little changed.

Now let's talk about trade policies. Trump, he is well known for his tough stance on trade. Everyone's heard about his tariffs. Particularly, he's tough on China, and rightfully so, because we lose a lot to these foreign competitors every year in the way of intellectual property. It's being stolen and then used to compete against us here in the United States. And he also sees it as a way to reduce the trade deficit.

Now, many critics will argue that these measures could hurt consumers because it turns into higher prices, but if used the right way, tariffs are sometimes necessary to level the playing field.

Now, overall, Trump's approach is rooted in the belief that reducing taxes and regulation, it encourages business growth and job creation. Many experts will tell you, and this is not new, they will say that Trump's plan will raise the deficit by $5 trillion over the next 10 years. However, they're not assuming that our economy benefits in any way from his easier-to-do-business-in-the-US policy. Frankly, that should bring more business to this country, and it should allow for more jobs, better paying jobs, and that means more taxes being generated.

Now let's switch gears. We're going to spend some time on the policies and views of presidential candidate Kamala Harris. Now, Harris's economic approach, it focuses more on building what we'll call an inclusive economy. Tax reforms for the middle class, for example, and that includes a plan to provide tax credits, child tax credits, up to $6,000 per year for working families. Her goal, she says, is to boost consumer spending by putting more money into the hands of those who need it most. Now, keep in mind, President Trump did this very thing with the Tax Cuts and Jobs Act in 2017, so this may not be anything new.

Let's talk about minimum wage for a moment. Supports raising the federal minimum wage to $15 per hour. Now, states like California have already enacted such legislation. This is a move that Harris argues will lift millions out of poverty. Only 1.3% of all hourly paid workers make $725 per hour. In just a few years, that minimum wage, it could reach $20 per hour, and these employers will be forced to increase the cost of their goods being sold. When they pass these costs on to the consumer, that in effect is a tax that raises the cost of living. It certainly doesn't improve the standard

Investment in education and infrastructure is another component to the Harris campaign. She says that significant investment in public education and affordable housing and infrastructure projects are necessary, and she could be right. She believes these investments are essential for long-term economic growth, and she believes it will create jobs while supporting a more equitable economy.

Equitable has a different meaning to different people, and she sees it through the lens of forgiving student debt, providing first-time home buyers with a $25,000 credit towards their new home purchase. Now, with the 3 million affordable homes that she proposes to build in the coming years, giving every one of those homeowners a payout of $25,000 towards that purchase, the real cost of such accommodative measures, it is hard to quantify.

Harris's economic plan also aims to reduce income inequality and to ensure that economic growth benefits all Americans, not just the wealthy, and I think we're all for that. In my opinion, however, policies must be focused on helping people climb into prosperity, not fall into it. Moreover, Harris seems pretty committed to capping prices at the retail level. Every expert on the planet seems to be in agreement that capping prices would be bad medicine for our economy.

So let's summarize. Trump's policies, they lean towards lower taxes, deregulation, hard stance on trade, and emphasizes business growth and competitiveness. Harris, he focuses on tax relief for the middle class, raising the minimum wage and investing in public services to create a more inclusive economy. More of a handout versus a hand-up is what Harris's plan seems to be conveying.

Finally, neither candidate is addressing the overwhelming debt. Trump, a pro-business person, is probably the winner on some of these issues. Harris is more focused on bigger government spending, and that's to equalize society, something that is closer to impossible than possible, in my opinion.

These are two very different economic philosophies, but which one aligns with your vision for the country? Let me know in the comments below, and don't forget to subscribe for more insights on politics and the economy, and of course, good wealth management strategies. If you found today's video helpful, be sure to give it a thumbs up. Share it with others who might benefit. Thanks for watching. I'll see you next time on We're Talking Money.