US Election 2024: Donald Trump warns of ‘1929-style economic depression’ if Kamala Harris wins

Republican candidate and former President Donald Trump took a jab at Vice President Kamala Harris, claiming that if she were to win, the U.S. would be just three days away from a depression similar to the one in 1929.

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In a post on X, Trump said, “If Kamala wins, you are 3 days away from the start of a 1929-style economic depression. If I win, you are 3 days away from the best jobs, the biggest paychecks, and the brightest economic future the world has ever seen.”

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Trump alleged that Kamala’s inflation nightmare has cost the typical American family $30,000 dollars in higher prices—and now, “she wants to impose the largest tax hike in American history, and raise your taxes by $3,000 dollars a year.”

He concluded saying, “I will massively cut taxes for workers and small businesses—and we will have NO TAX ON TIPS, NO TAX ON OVERTIME, and NO TAX ON SOCIAL SECURITY benefits!”

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In another post, Trump emphasized illegal immigration and said, “As we rescue our economy, I will also restore our borders.”

“Over the past 4 years, Kamala has orchestrated the most egregious betrayal that any leader in American history has ever inflicted on our people. She has violated her oath, eradicated our sovereign border, and unleashed an army of gangs and criminal migrants from prisons and jails, insane asylums and mental institutions around the world, from Venezuela to the Congo—stealing countless American lives,” Trump said.

What happened in 1929?

The Great Depression was a global economic downturn that began in 1929 and lasted until around 1939. It was the longest and most severe depression ever experienced by industrialized nations, leading to significant changes in economic institutions, macroeconomic policy, and economic theory.

Initially starting in the United States, the Depression caused dramatic declines in output, widespread unemployment, and severe deflation in many countries. Its social and cultural impacts were profound, particularly in the U.S., where it marked the greatest adversity faced by Americans since the Civil War.

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During the Great Depression, industrial production in the United States fell by 47%, and real GDP declined by 30%. The wholesale price index dropped by 33%, indicating significant deflation. Although statistics can vary, it’s generally accepted that unemployment exceeded 20% at its peak. This severity starkly contrasts with the Great Recession of 2007–09, where real GDP declined by only 4.3% and unemployment peaked at less than 10%.

What is the current scenario of the US economy?

With the US presidential election comes closer, the economy remains a pivotal issue for voters. Earlier in October, a CBS News poll shows that six in ten Americans consider the economy to be either “fairly bad” or “very bad.” This perception persists despite positive economic indicators, such as GDP growth and low unemployment rates close to pre-pandemic levels. Many citizens feel they are worse off than they were four years ago, highlighting a disconnect between economic data and personal experiences.

This sentiment is likely to play a significant role in shaping voter decisions in the upcoming election.

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By various metrics, the U.S. economy appears to be on solid ground, with strong GDP growth and low unemployment rates. Notably, inflation has decreased to a three-year low of 2.4% as of September.

Despite the Federal Reserve raising interest rates to a 23-year high to combat inflation, the economy has managed to avoid a recession. Experts like Mark Zandi, chief economist at Moody’s Analytics, assess the economy’s performance as exceptional, giving it an “A+.”

(With inputs from agencies)