Economists say that Joe Biden proposes the most expansive tax and spending policies and regulations in modern US history. Prior to the 2016 US election, Donald Trump made a host of grandiose promises about the transformative impact his policies would have on the US economy. Tens of millions of jobs would be created. GDP would grow at rates not seen in decades. However, the record has not exactly lived up to that, which may be blamed on the pandemic or just bad policies.
Biden's manifesto proposes:
- A major increase in infrastructure and clean energy spending, certainly more than is currently planned or proposed by Donald Trump
- More spending on education, healthcare and the social safety net
- A hike in corporate profit taxes, reversing the steep cuts made by Trump in 2017
- An increase in personal income taxes, mainly hitting the well-off
In total, analysts at the credit rating agency Moody’s estimate Biden’s plans add up to $4tn of additional spending in the three years to 2024 and $1.4tn of additional taxes over that same period. But there’s more to economic policy than tax and spending. Biden’s pledge to decarbonise the US economy by 2050 implies more regulation of polluting US industries. His more liberal approach to immigration suggests a reversal of Donald Trump’s restrictive executive orders in this area. His stance on healthcare hints at restrictions on drug pricing and Biden supports a gradual doubling of the federal minimum wage, which hasn’t been lifted since 2009. While Biden has promised a tough line on China, it’s generally expected that he would halt Donald Trump’s protectionist trade wars of the past four years.
Will a Biden presidency affect the economy positively or negatively?
https://www.independent.co.uk/news/world/americas/us-election-2020/biden-economy-jobs-gdp-spending-2020-election-trump-b1256958.html
7 comments:
I personally think that Biden's policies will affect the economy positively. Of course, looking at it plainly it seems like his presidency will hurt the economy, especially when focusing on tax reforms and stocks. But his proposals have the goal of revitalizing parts of the economy as well as social nets of American society which I believe terribly need it. Evidently, people will answer your question differently depending on their political ideology or party identification, but trying to be neutral, I think we can agree that most of Biden's economic policies if eventually carried out properly, will do more good than harm to the economy and the American people.
It is interesting to see how Biden's policies will affect the national debt. It is likely that the increase in federal spending will create a larger debt, however, the increases in consumer and corporate taxes may partially offset fiscal spending. One way Biden's spending proposal may not be popular popularity is due to the areas he plans to invest in fiscally. While it may be necessary, workers do not want to increase the payroll tax for social security, though the retired population would like this. Additionally, the investment in sustainable resources likely would be unpopular among Republicans and may deter moderate Republicans from voting for Biden. It is doubtful some of Biden's proposals for sustainable energy would be passed by congress, and it will be interesting to see if he continues advocating for the investment in sustainable energy after being elected.
It is always hard to say what will happen before a presidency, as it doesn't matter as much what they said on the campaign trail, but more so on what they can get passed. If I had to guess, I would agree with Max that many parts of the Green New Deal, and investment in renewable infrastructure could be a hard sell. Especially with a stubborn Congress influenced heavily by the oil industry. If it were to pass though, the idea that it would create thousands of jobs seems promising for a country trying to recover from mass unemployment. I do think though that if Biden is elected, he may be moderate than many on the left hope for. Either way, whoever is elected has their work cut out for them trying to pull the US out of this pandemic hole.
I agree with what Jack said regarding what will happen before a presidency. Both presendential candidates have came out with many new proposals, but the question is just how effective they will be at implementing their proposed policies. However, I do think that if a Biden presidency were too occur, and he allocates appropriate resources to the areas which he is targeting such as education, healthcare, and the social safety net, it will have a positive benefit to the American economy. Moreover, his stance on corporate taxes is one that I think will be most beneficial to our economy. At a time where billionaires have more then doubled their wealth during a global pandemic, some of this money needs to be taken and reinvested into society. In regards to his Green New Deal and investment in renewable infrastructure, I am doubtful that he will be able to make any progress for the four years he will be in office if he were to be elected, but, I do believe that Biden will help pave the way for the future renewable resources.
I think that the real determinant on if Biden's presidency will be successful will be on how corporations react to the increase in taxes. I think in theory it makes a lot of sense to raise taxes on corporations, but it could have a trickle down effect and actually hurt the middle and lower classes. If corporations are taxed more heavily, they are not going to want to see their profits drop so they may raise prices on their goods depending on if they are elastic or inelastic. In addition, corporations may decide to move overseas and do business else where because of the increased tax rates in the U.S. I believe that a tax on the well-off could help the economy, especially with the U.S.'s deficit. It is impossible to say just exactly how the economy would react to a Biden presidency, but I think it important to understand some of the impacts that these policies could have.
I think if Biden wins the presidency his established economic policy will be a great impacts to the US economy. I think the impact will be pretty positive because his policy look to fix a lot of the problems of the united states problem such as income inequality lack of universal health care and lack of conversion to renewable energy. The most important policy he will impose is the tax increase that I believe will greatly help relieve the budget deficit
Biden's manifesto definitely has some positive attributes. Perhaps he is giving forth a more progressive approach compared to previous candidates. However, his being elected and the impact it has on the national debt will definitely be very interesting to see. While he might improve finances by improving trade it will be interesting how he works on industries like oil. Even though we are moving towards modern solutions I don't believe we are there yet in terms of moving away from oil completely. He has proposed to invest in solar energy but some of these plans seem like things that do not have a strong base backing them. Whatever the result of the election I just hope better policies are made and more effort is done to improve the country as a whole.
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