Trump and Harris face national debt crisis in America

The Penn Wharton Budget Model recently analyzed the economic plans of Donald Trump and Kamala Harris, predicting significant increases in the national deficit. Trump's proposals could add approximately four trillion dollars to the deficit over the next decade, primarily due to tax cuts without corresponding spending reductions. His commitment to renewing the 2017 tax cuts and eliminating taxes on Social Security benefits are key factors in this projection. Conversely, Harris's plans are expected to increase the deficit by about two trillion dollars, largely through expanded refundable tax credits and a proposed 40 billion dollar innovation fund aimed at affordable housing. Harris's initiatives, including downpayment assistance for first-time homebuyers, raise concerns about potentially creating a new housing bubble, which could lead to an economic crisis worse than the Great Recession. The study warns that the combination of multiple economic bubbles bursting and the potential loss of the dollar's status as the world reserve currency could exacerbate the situation. Both candidates' approaches to economic policy suggest a trend towards increased federal spending, which complicates the narrative surrounding the importance of fiscal responsibility. The ongoing rise in federal deficits is likely to result in tax increases, either directly through legislative measures or indirectly through inflation caused by the Federal Reserve's debt monetization. Without significant cuts to government spending, the U.S. faces the prospect of an unprecedented economic crisis. The analysis highlights the urgent need for a reevaluation of fiscal policies, as both candidates appear poised to contribute to the growing national debt rather than address its root causes.