Democratic presidential hopeful Elizabeth Warren on Monday unveiled a financial plan she says will stave off a financial crisis that’s headed for the United States.
In a blog post to her Medium page titled “The Coming Economic Crash and How To Stop It, Warren said “warning signs are flashing” for an economic downturn in 2019 or 2020 — and she said the signs are being ignored the same way they were ignored before the crisis in 2008.
“I warned about an economic crash years before the 2008 crisis, but the people in power wouldn’t listen. Now I’m seeing serious warning signs in the economy again — and I’m calling on regulators and Congress to act before another crisis costs America’s families their homes, jobs, and savings,” she wrote.
“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 said household and corporate debts are high and manufacturing is in a recession, and the federal government is expected to reach its debt ceiling again as early as September. A failure to deal with the debt ceiling, she said, could be more catastrophic than the 2008 crisis that toppled some Wall Street banks.
“The good news is that we have the chance to head off a crisis,” she wrote. “If we take bold action now to address the underlying problems in the economy.”
Warren’s plan calls for a $15 hike to the federal minimum hourly wage, a reduction of corporate-leveraged lending, a “green” manufacturing plan and changes to some of the Trump’s administration’s foreign economic policies, like the trade conflict with China.
“The country’s economic foundation is fragile. A single shock could bring it all down,” she wrote. “And the Trump Administration’s reckless behavior is increasing the odds of just such a shock.”
Warren’s latest plan is the latest of numerous proposals she’s unveiled since declaring her candidacy for 2020. She detailed a plan last week to rein in Wall Street that included limiting compensation for corporate leaders. Last month, she introduced a plan to increase election security.
Copyright 2019 United Press International, Inc. (UPI). Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI’s prior written consent.
This content is published through a licensing agreement with Acquire Media using its NewsEdge technology.