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The campaign for Vice President Kamala Harris is issuing stark warnings to business leaders about the potential dangers to U.S. economic growth if Donald Trump were to return to the White House. The Harris team argues that Trump's alleged disregard for democratic principles and the rule of law poses a serious threat to both companies and workers.

In contrast, Trump’s campaign rejects these assertions, promising lower prices and unprecedented economic growth. The former president, leveraging his background in real estate and billionaire status, advocates for higher tariffs to encourage domestic manufacturing and significant tax cuts for the wealthy and corporations as a way to spur investment.

This divide highlights a fundamental difference in economic philosophy between the two candidates. Harris’ team stresses that adherence to the rule of law is essential for market stability and worker prosperity. Trump, on the other hand, believes tariff hikes and tax reductions are the primary engines of economic growth.

Economic adviser Gene Sperling, who has served under three Democratic administrations and is now supporting Harris, points out that a president targeting various entities could erode investment confidence— a cornerstone of America's economic strength. Conversely, Trump supporter and billionaire hedge fund investor John Paulson claims that under Trump, the world was more stable, and inflation was lower.

Trump has criticized his opponent's economic strategies, branding them as "stupid" and predicting a stock market crash if he loses. However, the S&P 500 index has seen a significant rise of about 50% during President Joe Biden's tenure. Trump has promised lower taxes, energy costs, and regulatory burdens to maintain the U.S. as the largest market globally.

The Harris campaign's strategy links the January 6, 2021, Capitol riots and Trump's history of attacks on the Federal Reserve and several major companies to potential risks for long-term corporate investment if democratic values are under siege.

Prominent figures like former Treasury Secretary Robert Rubin, ex-American Express CEO Kenneth Chenault, and former Biden economic advisor Brian Deese have been conveying these concerns to corporate executives. Some apolitical business leaders have privately voiced fears about a Trump presidency, highlighting democratic standards as critical for market function, a sentiment echoed by Brookings Institution’s Vanessa Williamson.

Support for the two campaigns from the business community is divided. Trump enjoys backing from Tesla and SpaceX owner Elon Musk, while billionaires like Microsoft founder Bill Gates and entrepreneur Mark Cuban support Harris. The candidates also clash over policy matters, with Trump claiming that Harris' favored higher corporate tax rates would stifle investment, while Harris criticizes Trump’s intention to dismantle certain Biden-era incentives crucial for advanced manufacturing.

The Nobel memorial prize in economics recently lent credibility to Harris’ argument by awarding economists who demonstrated the importance of social institutions and rule of law for economic prosperity. Notably, 23 Nobel laureates in economics endorsed a letter that criticizes Trump's economic plans, arguing they would increase prices, deficits, and inequality.

While Vice President Harris has a profound interest in how democratic erosion impacts growth, President Biden's chief of staff, Jeff Zients, has also emphasized the economic uncertainties tied to a potential Trump administration. Major business organizations like the Business Roundtable and the U.S. Chamber of Commerce have not yet endorsed any candidate, though they emphasize supporting corporate interests under any administration.

Amidst these conflicting visions, the Business Roundtable’s CEO Josh Bolten has advocated for the peaceful transfer of power. Trump, however, has not committed to this principle, maintaining baseless claims of electoral fraud that fueled the 2021 insurrection.