In a recent CNBC interview, Goldman Sachs CEO David Solomon set the record straight after Vice President Kamala Harris referenced the bank’s analysis during a heated presidential debate. Harris had cited the Wall Street giant’s forecasts as proof that her economic plan would outperform Donald Trump’s. However, Solomon clarified that Harris had misinterpreted the report.
Solomon explained that the Goldman Sachs analysis didn’t show a stark difference between the two candidates’ plans. The report examined several policies from both sides, attempting to model how each would influence GDP growth. Solomon stressed that the findings were limited in scope and carried significant uncertainty.
While the report didn’t completely favor Harris, it did suggest some notable benefits to her proposals. For instance, her victory could lead to more job creation – about 10,000 more jobs per month compared to Trump’s policies under a divided government. Additionally, the analysis showed that her tax policy, which includes raising taxes on individuals earning over $400,000 and corporations while offering tax cuts to the middle class, could lead to a slight boost to GDP growth between 2025 and 2026.
On the other hand, Trump’s economic strategy remained vague, and his intentions to raise tariffs didn’t receive a favorable nod from economists. According to the Goldman analysis, these tariffs could increase inflation and put more pressure on consumers.
Solomon’s clarification sparked a heated debate on the future of U.S. policy, with some arguing that Harris’ plan held a slight edge regarding jobs and long-term economic growth, while others believed that Trump’s measures would stimulate the economy. As the presidential debate continues, one thing is clear – the economy will be a crucial topic in the coming months.
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