WASHINGTON — The campaign for Kamala Harris is currently alerting business leaders to the potential dangers posed by Donald Trump’s apparent disdain for democratic principles and the rule of law. This approach highlights the negative repercussions for both companies and their workers if Trump were to reclaim the presidency.
In contrast, Trump’s team argues that his victory in the upcoming election would result in lower prices and invigorated economic growth. As a billionaire known for his ventures in real estate, Trump has promoted higher tariffs aimed at attracting manufacturing back to the U.S., as well as tax reductions for wealthy individuals and corporations, asserting that these measures will catalyze long-term investment.
The differing viewpoints illustrate a fundamental difference in economic philosophies between the two candidates. Harris’ campaign posits that maintaining the rule of law fosters an environment where markets and workers can prosper, while Trump believes that increasing tariffs and cutting taxes are pivotal for achieving economic expansion.
Gene Sperling, a veteran advisor on economic policy to three previous Democratic presidents, is currently working with the Harris campaign to communicate the risks associated with a second Trump administration. He emphasizes the potential fallout on investment confidence due to Trump’s tendency to target individuals and organizations, including CEOs and media outlets, as detrimental to America’s already strong economy.
On the other hand, Trump backers such as billionaire hedge fund manager John Paulson dispute the claims made by Harris’ team, arguing that under Trump’s administration, the nation experienced more stability and lower inflation rates. He dismisses the idea that a Trump presidency would jeopardize the rule of law, painting Trump as a savvy businessman intent on reducing unnecessary expenditures and spurring growth.
During his rallies, Trump has been openly critical of Harris’ economic strategy, labeling it “stupid” and warning of a potential crash in the stock market if he loses. Yet, statistics reveal a significant increase in the S&P 500 index since President Joe Biden took office. At a rally in Pennsylvania, Trump asserted that his administration would provide businesses with the lowest taxes, energy costs, and regulatory requirements. He warned that a continuation of current policies would lead the nation to decline.
The Harris campaign also connects past incidents, such as the January 6 insurrection, to Trump’s pattern of undermining democratic norms. They argue that such actions ultimately discourage companies from making long-term investments. Additionally, prominent figures like former Treasury Secretary Robert Rubin and Kenneth Chenault, ex-CEO of American Express, have joined Harris in advising corporate executives on these matters.
Insight from individuals close to the Harris campaign indicates that they do not need to exert much pressure; many business leaders, who prefer to remain politically neutral, share concerns privately regarding a potential Trump presidency. Meanwhile, experts like Brookings Institution’s Vanessa Williamson caution that the risks being underplayed by the Harris campaign, emphasizing that many Americans take the fundamental rule of law for granted.
Both candidates are vying for backing from the business community. While Trump boasts support from high-profile figures like Elon Musk, Harris has attracted endorsements from notable millionaires including Bill Gates and Mark Cuban.
Policy discussions have primarily focused on tax implications, with Trump warning that Harris’ proposed corporate tax increases would deter investment, while Harris maintains that Trump’s agenda would endanger jobs in critical sectors like technology and automotive manufacturing.
The relevance of the argument surrounding democratic values gained traction particularly after three economists were awarded the Nobel prize, advocating for the importance of societal institutions and rule of law in fostering economic health. A group of renowned economists echoed these sentiments by signing a letter denouncing Trump’s economic strategies for potentially escalating prices and widening income inequality.
Given her background as California’s attorney general, Harris has long been invested in understanding how eroding democratic values could affect economic performance. Reports indicate that she has even commissioned research to validate this viewpoint. Additionally, during Biden’s campaign, chief of staff Jeff Zients argued to CEOs that uncertain political climates under Trump could negatively affect economic growth.
Currently, neither the Business Roundtable nor the U.S. Chamber of Commerce has publicly endorsed any candidate for the upcoming presidential election. The Business Roundtable aims to maintain corporate tax rates at the existing 21%, while Trump has proposed further reductions for manufacturers, and Harris aims to increase the rate to 28%.
The Chamber has made it clear that it will advocate for its members regardless of who assumes office. Business Roundtable CEO Josh Bolten has stated that his organization endorses the importance of a peaceful transfer of power, a principle that Trump has not fully committed to since alleging that his 2020 loss was due to election fraud—a claim that incited the insurrection events of January 6. Bolten called for respect towards the electoral process and the lawful transition of power.