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Elizabeth Warren: We're Headed for 'Economic Crash'

She says it can be warded off in the next year or two, but not with Trump policies
By Newser Editors,  Newser Staff
Posted Jul 22, 2019 3:00 PM CDT
Sen. Elizabeth Warren, D-Mass., speaks at the AARP Presidential Candidates Forum at the Sioux City Convention Center in Sioux City, Iowa, on Friday, July 19, 2019.   (Olivia Sun/The Des Moines Register via AP)

(Newser) – One of the factors thought to be in President Trump's favor in the 2020 election is the economy, thanks to low unemployment and a rising stock market, notes Politico. But if Elizabeth Warren is correct, Trump might actually be in trouble over the economy before election day. "Warning lights are flashing," she writes in a post at Medium. "Whether it’s this year or next year, the odds of another economic downturn are high—and growing." Warren ticks off a number of factors, including “a manufacturing sector in recession," along with rising household and corporate debt, and she writes that she sees "a number of serious shocks on the horizon that could cause our economy’s shaky foundation to crumble." Trump's trade fight with China is one example of such a shock, she writes.

CNBC notes that Warren is a longtime consumer advocate, and she writes in her very first sentence that she similarly warned of the 2008 collapse years in advance. (Warren includes a link to a PolitiFact article calling that claim true.) So how to avoid the "coming economic crash"? Warren cites a number of proposals she has previously raised, such as forgiving school loan debt, bolstering unions, providing universal child care, and raising the minimum wage to $15 an hour. Given that the White House and a Republican-controlled Senate will not enact such things, Politico notes that Warren's prediction of a looming crash will be put to the test between now and the 2020 election. (Read more Elizabeth Warren stories.)

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