As Vice President Kamala Harris campaigns for the presidency, her economic policies are raising alarms about the potential for a deep recession. Experts and financial analysts are increasingly warning that Harris’ tax plan, immigration stance, and regulatory agenda are creating a perfect storm that could drive the U.S. economy into a prolonged downturn. With policies that disincentivize work and investment, and exacerbate rising unemployment, the economic red flags are impossible to ignore.
A Tax Plan With Devastating Consequences
Harris’ tax plan, closely aligned with President Biden’s proposals, has drawn significant criticism for its potential long-term economic impact. According to the Tax Foundation, Harris’ tax plan could lead to a loss of nearly 800,000 jobs, a 2% decline in GDP, and a 1.2% drop in wages. The plan’s most harmful aspects include raising the net investment tax from 3.8% to 5% and increasing the additional Medicare tax from 0.9% to 2.1%. These measures are expected to cost 177,000 jobs and reduce GDP by 0.5%.
Fox Business host Charles Payne highlighted several economic red flags tied to the Harris-Biden agenda. He noted that unemployment is rising faster than usual ahead of the Federal Reserve’s recent rate cut. The U.S. savings rate has plummeted to 2.9%, a third of the historical average seen during previous rate cuts. Payne emphasized that U.S. debt has surged by 123%, further burdening an already fragile economy.
Image Source: USDebtClock.org
Immigration Policies Fuel Unemployment Surge
Federal Reserve Chairman Jerome Powell recently linked rising unemployment rates to the influx of illegal migrants entering the U.S. labor market. Speaking to reporters, Powell noted that the combination of increased migration and slow job creation has significantly contributed to the rising unemployment rate, which has grown from 3.7% at the start of 2024 to 4.2% in August.
Under the Biden-Harris administration, more than 9 million migrants have crossed into the U.S. since 2021, with an additional million believed to have entered undetected. This surge has flooded the labor market, particularly in blue-collar sectors, where competition for jobs has intensified. Powell’s remarks underscore the strain that this influx has placed on the economy, as the U.S. continues to see weaker-than-expected job growth. Only 142,000 jobs were added in August, falling short of projections by 20,000 jobs, and July’s job growth of 89,000 was the lowest since the pandemic.
Harris’ immigration policies, which critics argue have effectively encouraged a rise in illegal crossings, are seen as directly contributing to the labor market’s challenges. By allowing millions of undocumented workers to enter the workforce, these policies have not only displaced American workers but also exerted downward pressure on wages and job availability.
Disincentives for Work, Investment, and Retirement Savings
Beyond immigration, Harris’ broader tax agenda further discourages investment and job creation. Increasing the corporate tax rate from 21% to 28% is projected to cost 125,000 jobs and reduce GDP by 0.6%. This policy change sends a clear signal to businesses: reinvestment is less profitable, and expansion may not be worth the risk. Additionally, raising the top individual income tax rate to 39.6% for high earners would further suppress economic activity, costing an estimated 86,000 jobs.
But the impact doesn’t stop at your paycheck. These policies also pose a serious threat to retirement savings. By taxing investment income at higher rates, Harris’ plan directly affects the returns on 401(k)s, IRAs, and other retirement accounts. As taxes increase, your potential to grow your savings decreases, leaving you with less when it’s time to retire. And when corporate taxes rise, stock prices often fall, hitting the value of your retirement portfolio even harder.
Worse yet, inflation—fueled by Harris’ spending and tax policies—can silently erode the purchasing power of your savings. Even if your retirement accounts grow on paper, the dollars you’ve saved might not go as far in the real world. Rising costs, from healthcare to everyday essentials, mean that retirees will need more money just to maintain the same standard of living.
Recession Red Flags: Economic Data Paints a Grim Picture
The economic red flags are waving brightly, as evidenced by the recent Federal Reserve decision to cut interest rates by 0.5 percentage points, the first reduction since early COVID-19. Despite the rate cut, job creation remains weak, and the labor market continues to underperform expectations. The significant downward revision of job numbers, with 818,000 fewer jobs created than previously reported between March 2023 and 2024, highlights the economy’s struggles.
With household debt hitting record highs of $17 trillion and corporate bankruptcies on the rise, the broader economic outlook remains uncertain. Consumers are increasingly reliant on debt to sustain their lifestyles, a dangerous trend that poses substantial risks to financial stability. Meanwhile, rising corporate defaults indicate mounting pressures on businesses, further underscoring the economy’s fragility.
What Does This Mean for You?
The economic storm brewing from Kamala Harris’ policies isn’t just Washington drama—it’s a direct hit on your financial security. Imagine this: fewer job opportunities, rising prices, and a paycheck that doesn’t stretch as far as it used to. Your hard work is worth less because the economy is squeezed by bad policy decisions. But here’s the truth: you don’t have to be at the mercy of Washington’s economic roulette.
Now is the time to shield your financial future. With the economy teetering on the edge, diversifying your savings isn’t just smart—it’s essential. Gold and silver have shown remarkable resilience in 2024, providing a wealth haven as stocks and traditional investments face uncertainty. Gold is up over 21% this year, and silver has skyrocketed more than 35%, outpacing inflation and showing their true value as a shield against economic instability.
Imagine your IRA or 401(k) fortified with tangible assets like gold and silver—assets that don’t just sit idly while the market swings. When everything else falters, these precious metals hold strong, preserving your wealth when you need it most. Don’t wait until the next wave of economic bad news. Act now, defend your future, and turn the economic chaos of today into an opportunity for tomorrow.
Sources:
- Kamala Harris’ tax plan could cost US nearly 800K jobs
- IRS might take more of your money under Kamala Harris
- Here’s what Kamala Harris’ tax Armageddon will cost you and the US economy
- Mark Cuban warns taxing unrealized gains will ‘kill the stock market
- Gold price has risen 21% in 2024
- Silver Prices Are Up Nearly 35% in 2024
