- Sen. Elizabeth Warren knew that the 2008 housing market would crash.
- Sen. Warren is warning everybody that the same thing could happen soon.
- Sen. Warren has multiple solutions to help prevent the crash from happening.
TALLAHASSEE, Fla. – Sen. Elizabeth Warren is warning everybody that an economic crash is incoming.
What Are The Warning Signs?
Right now, the economy is currently expanding, and it has been for the last 10 years. The stock market is strong, and unemployment is low. Inflation is low as well. But these were similar conditions we had before the 2008 housing market recession.
Right now, the economic yield curve is inverted. An inverted yield curve means that long-term interest rates fall below short-term interest rates. With every economic downturn, it was always preceded with an inverted yield curve.
Sen. Warren has pointed out a couple of different issues that could lead to an economic downturn. She says there is a high amount of household and student debt. Right now, there is at least $1.5 trillion in student debt. There is also the fact that corporations are sitting on a large number of high-risk loans.
Essentially, Sen. Warren is saying that the US economy’s foundation is on loans. There is a couple of ways that the economy could tip and fall. One way is if the US hits the debt ceiling. President Trump, the Senate, and the House are in agreement about temporarily removing the debt ceiling.
The ongoing trade war with China could also push the economy over the edge. Something completely unrelated to the United States could also affect our economy. If Brexit is messy and it causes a lot of economic harm, that could break the US economy.
Ways To Prevent A Downturn
Like with everything else, Sen. Warren has a plan to prevent an economic downturn from happening. She proposes that the US invests $2 trillion over 10 years for environmental research. This will create more manufacturing jobs without doing further harm to the environment. The $2 trillion will also go into other manufacturing jobs and exports. This would create more jobs and stimulate the economy without relying on loans.
Sen. Warren’s plans do not end there. Like most Democratic candidates, Sen. Warren wants to raise the minimum wage to $15 an hour. On top of that, allowing workers to pick the corporate board members will make them more responsible. Sen. Warren says that canceling a large majority of student debt outright will also help as well.
Even though the economy looks good by most standards, ElectionOdds.com knows Sen. Warren has been right about this before. As President, Sen. Warren wants to create a more fiscally responsible economy. She says she wants to end corporate greed that allows the economy to spiral out of control. Sen. Warren has a lot of work to get done if she wants to improve her election odds and implement any of her plans.