Donald Trump labeled ‘fiscal disaster’ as Moody’s Analytics claims ex-POTUS’ economic plan could trigger recession by 2025

WASHINGTON, DC: An economic analysis conducted by Moody's Analytics indicates that President Joe Biden's economic policies are more favorable for the US economy than those proposed by former President Donald Trump.

According to the analysis, Trump's MAGAnomics economic plan, characterized by tax reductions for the wealthy, heightened import tariffs, and the mass deportation of immigrant workers, could lead to a recession by mid-2025.

Under such a scenario, the economy would experience a slowdown to an average annual growth rate of 1.3%, compared to 2.1% under President Biden's policies, according to MeidasTouch.

The 78-year-old MAGA strongman's proposal to raise import tariffs in order to fund the government would force businesses to pass on their increased costs to customers, exacerbating inflation, which had been gradually declining under the Biden administration.

Chief Economist of Moody’s Analytics, Mark Zandi said, "Biden’s policies are better for the economy."

What did Moody Analytics’ economic analysis of both presidential candidates’ proposed plans entail?

As per the findings by Moody's Analytics, in the event of a Trump administration next year, inflation is projected to rise from the current 3.3% to 3.6%. This figure contrasts sharply with the 2.4% forecast under President Joe Biden for the same period.

Additionally, the US is expected to undergo a deficit of 3.2 million jobs and a 4.5% unemployment rate by the conclusion of Trump's term, in contrast to Biden's record of maintaining unemployment at under 4% for 26 consecutive months.

Furthermore, the economic growth in the US in 2023 under Biden exceeded that of China for the first time in 40 years.

The increased tariffs on imports, along with the consequent increase in inflation, could invariably strengthen the value of the dollar, thereby, leading to a reduction in the export of US products, which could have adverse effects on manufacturers and their employees.

Michael Strain, Director of Economic Policy Studies at the American Enterprise Institute, deemed a conservative think tank, claimed, "I think it would be bad for workers and bad for consumers."

The national debt will rise by trillions as a result of Trump's tariff plan, which potentially won't completely offset his intended tax cuts.

Democratic National Committee (DNC) National Press Secretary Emilia Rowland, said in a statement, "Trump just received a report card for his extreme MAGAnomics plan, and Moody’s gave him a failing grade. The latest report by Moody’s details how a second round of Trump’s MAGAnomics agenda would tank the economy, and trigger a recession by 2025."

On the other hand, cool inflation trends are expected to continue and hit the goal of 2% sometime around summer 2025 if Biden wins the presidency and has a divided Congress, which is the scenario that economists have been predicting the most.

Internet mocks Donald Trump over claims made by Moody's Analytics

Trump received significant backlash online after Moody's Analytics claimed his economic policies could lead to a recession by mid-2025.

One X user remarked, "What do we expect from someone who tanked it last time with tax cuts, debt, an abysmal response to Covid, and has much experience with bankruptcy due to his own failures. I mean come on."

Another user said, "President Biden has done a superb job."

Another user claimed, "We were already headed towards a recession with Trump before Covid. Just ask all the economists what his tariff threats would be if he got elected again. Trump is a fiscal disaster."

One X user wrote, "Of course! Perfect reminder that Republicans including Trump tank the economy! Tariffs will do that! Just vote Biden if you want the economy to remain good!"

Another user argued, "MAGA Republicans don’t care about the ramifications for the economy as long as their rich supporters get richer and the rest of us become poorer."

Finally, this user tweeted, "The @GOP is the recession party."

This article contains remarks made on the Internet by individual people and organizations. MEAWW cannot confirm them independently and does not support claims or opinions being made online.