Treasury Secretary Janet Yellen argued that a fractured democracy can harm the economy, indirectly criticizing Donald Trump.
Speaking at the McCain Institute’s Sedona Forum in Arizona on Friday, Yellen used economic data to illustrate how disregarding America’s democratic processes and institutions could lead to economic stagnation over many years.
While Yellen did not mention Trump by name, her remarks alluded to the potential impact of his return to the White House. She cautioned business leaders against overlooking Trump’s disregard for modern democratic norms in favor of his economic policies focused on tax cuts and deregulation.
Yellen acknowledged that discussing democracy may seem unusual for a treasury secretary but stressed its importance in building and sustaining a robust economy.
Secretary Janet Yellen (Via Harry Anderson/Getty Images)
She criticized the argument put forth by authoritarians that sacrificing democratic principles for economic gains is justified, calling it fundamentally flawed. Yellen referenced a study suggesting that promoting democracy can increase long-term per capita GDP by about 20%.
Yellen also referred to the January 6, 2021, Capitol riot as a moment when democracy faced a serious threat from rioters who believed false claims about the election. Trump, who continues to assert the election was stolen, faces legal challenges related to his efforts to overturn the results.
While Yellen did not directly mention Trump’s recent remarks about not committing to accepting this year’s election results, his actions have again challenged the tradition of a peaceful transfer of power.
