US Economy: Why Elizabeth Warren Is Warning Of A 'Coming Economic Crash'

Sen. Elizabeth Warren warns that the U.S. is headed for an economic downturn in a blog post Monday, "The Coming Economic Crash -- And How To Stop It."

The Democratic presidential candidate asserts that debt is one of the biggest factors strangling the economy and that increasing personal debt burdens are a reaction to the rising costs of housing, childcare and education. Warren also noted that student loans have "more than doubled" since the financial crisis of 2008 and added that 71 million Americans have loans in collection.

The economy is expected to be a major talking point in 2020. President Trump has frequently touted a strong economy as among his top accomplishments.

Warren says that corporate debt is also a major risk factor for the U.S. economy, as companies with high debt are increasingly taking on further debt burdens. She says providing loans to companies with high debt, or leveraged lending, "has jumped by 40% since Trump took office."

Warren also blames Trump's China tariffs and his protectionist policies, saying that the U.S. is experiencing a "manufacturing recession."

Trump's trade policies have drawn concerns from both sides of the political aisle. Reports surfaced in March that Senate Republicans have pleaded with Trump to drop new tariffs on foreign carmakers to avoid voter backlash in key states and also prevent a potential recession.

Warren wrote that lawmakers should implement policies to reduce household debt, monitor corporate lending and strengthen American manufacturing. Warren wants to stabilize the economy, citing erratic economic policies during the Trump era.

Warren, who joined the Senate in 2013 after campaigning in Massachusetts against big banks, has frequently pushed policies that she believes would help the American middle class. One of her top achievements was helping create the Consumer Financial Protection Bureau (CFPB), a regulatory body which aims to protect consumer rights.

Much of Warren's early presidential campaigning has focused on reducing student loan debt, creating new housing and fighting corruption in Washington among ex-lawmakers.

Political pundits have said Warren could be splitting votes with Vermont Sen. Bernie Sanders, who is also running on a progressive policy platform against big corporations and economic inequality.

Trump has frequently slandered Warren, calling her "Pocahontas" due to what he perceived as false claims of her Native American ancestry. Trump maintained his skepticism despite Warren releasing DNA results in October that show "strong evidence" of some Native American ancestry.

Trump has also weakened Warren's CFPB under his administration.