Kamala Harris’ campaign is actively warning business leaders about the potential threat to U.S. economic growth if Donald Trump returns to the White House, citing his disregard for democracy and the rule of law. This argument is based on the belief that the certainty provided by the rule of law is essential for markets and workers to thrive. On the other hand, Trump’s team asserts that lower prices and stronger growth will be achieved under his leadership through tariff increases and tax cuts for the wealthy and corporations.
Gene Sperling, an economic advisor to the Harris campaign, has been making the case to financiers and others that a second Trump administration could have a detrimental impact on investment confidence and overall economic stability. However, Trump supporters like billionaire hedge fund investor John Paulson dismiss these concerns, highlighting the stability they believe existed under the former president’s tenure. Trump himself has criticized Harris’ economic policies as “stupid” and warned of a stock market crash if he loses the election, despite the market’s growth during Biden’s term.
The Harris team is linking the January 6th insurrection at the U.S. Capitol with Trump’s history of attacking democratic institutions and entities such as the Federal Reserve and various companies. They argue that such attacks on democratic values could deter companies from making long-term investments. Corporate executives have also been hearing from figures like Robert Rubin and Kenneth Chenault about the risks associated with a Trump presidency, with concerns being raised by apolitical CEOs as well.
Both campaigns are courting support from the business community, with Trump backed by figures like Elon Musk and Harris receiving support from Bill Gates and Mark Cuban. Policy differences, such as corporate tax rates and incentives for manufacturers, have been at the center of the debate between the two candidates. The importance of democratic values in fostering economic growth gained credibility after Nobel laureates in economics highlighted the significance of the rule of law in economic success.
As the election approaches, the focus on the potential economic impacts of a Trump re-election intensifies. The Business Roundtable and U.S. Chamber of Commerce, key business groups, have refrained from endorsing either candidate. They have emphasized the importance of a peaceful transfer of power and respect for electoral processes. With contrasting views on economic policies and democratic values, both campaigns are making their final appeals to the business community and voters ahead of the election.
