Donald Trump warns that the US economy may reach the levels of the Great Depression
Former President Donald Trump has warned that the nation could enter an economic depression due to President Joe Biden’s fiscal policies.
Trump made the remark during a “Save America” rally in Prescott Valley, Arizona, on Friday night. The former president said that the country’s highest inflation rate in decades could lead to a 1970s-style “stagflation” — phrases “stagflation” and “inflation” and an economic condition defined by simultaneous high inflation, high unemployment, and stagnation. He then suggested that the economy could enter a depression similar to the worldwide Great Depression from 1929 to 1939.
“Real wages are collapsing and we’re about to enter a devastating phase – and this is devastating – called stagflation, look at it,” Trump said. “It’s not good, it’s not good.” “What worries me is that they keep talking about some relapses, and I don’t want people to mention the word ‘depression’. Because the place we’re going to now could be a very bad place.”
He continued, “We have arranged this, and we have to make this country go, otherwise we will have a serious problem.” “Not a recession. Recession is a nice word. We’re going to have a much bigger problem than a recession. We’re going to have a depression. You know, in 1929 they had this thing called a depression, you know that right? I wish they just had a recession.”
While few economists are currently forecasting economic disruption on the scale of the Great Depression, many have recently concluded that a recession may be inevitable due to rising inflation. Stagflation is thought to be less likely because unemployment rates have remained so low under Biden.
Larry Summers, a Democrat who served as the chief economic adviser to former President Barack Obama, said in an interview published Friday that avoiding a recession is unlikely. He predicted that “the odds are probably better than half” that the recession will start next year, although it may start sooner.
Summers noted that avoiding a recession with inflation remaining “significantly above” 4 percent – the rate was 9.1 percent at the end of June – and an unemployment rate below 4 percent (currently 3.6 percent) would be an achievement that “never happened” in the US in the 60 or so years. 70 years old.”
Trump delivered his speech Friday in support of Arizona Republican candidate for governor Carrie Lake, a former television news anchor who strongly supports Trump’s false claims that the 2020 presidential election was “stolen” from him due to widespread voter fraud.
The appearance also came a day after the House Select Committee to investigate the January 6 siege of the Capitol held a prime-time hearing that included video footage of Trump refusing to acknowledge that the 2020 election was “over” a day after the Capitol riots, as well as incriminating testimony from former assistants.
The gathering was originally scheduled for July 16, but was postponed last week after the death of Trump’s ex-wife Ivana Trump, who was found dead at her Manhattan home on July 14. Three of his sons, on Wednesday.
NEWSWEEK I reached out to the Trump office and the White House for comment.