Commentary: Joint Economic Committee Democrats released a new report today on the economic costs of corruption. Although corruption is not a concept we are familiar with discussing in the context of the contemporary American politics, President Trump has begun to undermine the norms and institutions that enable not only our democracy to function, but also our economy.
The report, “The Costs of Corruption to the American Economy,” finds that the President’s financial conflicts of interest are a clear cause for concern. The effects of corruption are not just the benefits to President Trump and his associates, they likely will also hurt economic outcomes for all Americans. If the United States government was as corrupt as Italy’s, gross domestic product (GDP) per capita would have grown 2.1 percentage points less every year. This has huge implications for Americans: if GDP per capita grew 2.1 percentage points less in 2016, output would have fallen by $1,170 per person.
“Congress must be vigilant against the potential for President Trump to enrich himself and his family at the expense of the average American,” said U.S. Senator Martin Heinrich (D-N.M.), Ranking Member of the Joint Economic Committee. “The President and his family’s conflicts of interests are inexcusable and unacceptable, and could depress economic output by over $1,000 per person just in one year. Not only are these practices dangerous, but harmful to the economic security of American families across the country.”
Click here to read the full report.