https://www.marketplace.org/2020/10/22/what-would-delayed-election-results-mean-for-the-economy/
Everyone is anxious about the election. Economists are especially nervous with the amount of uncertainty currently in the US with the pandemic worsening, small businesses closing, families losing income, and firms wary of investing in capital and labor. The uncertainty of such a messy election year has caused some people to believe that we might not know the results of the election until the following day. With the country in such a vulnerable place, action needs to be taken quickly to help the American people and our economy.
Currently, the Trump administration is fighting another stimulus package. However, our people may need it now. It is presumed that the current administration is holding off until the results of the election are released. Depending on the outcome of the election, we may not see a stimulus package until Januray or February. If or when we get another stimulus package, will we be too far gone and will it help those who need it most? Do you think our economy can withstand the strife and uncertainty for much longer?
I think the uncertainty in the economy is affecting what we've learned a lot in class about expectations. People's expectations of the economy have huge impacts on the actual outcomes of the economy. Even if the stimulus package goes out later, it make have to dig us out of an even deeper hole, but I think it will still help us in some ways more than not.
ReplyDeleteI have heard that the results of the election may take even longer to come out. If this is the case, I see uncertainty really hurting the stock market. The amount of uncertainty around the world that would occur if the next president of the United States cannot be quickly known could shock the world markets. This could further impact people's financial situations in the U.S.
ReplyDeleteI think people are at more of a stand still right now. They are waiting to see who takes the presidential power. I think some people's expectations will change following the election results. No matter the party that is in office, a stimulus package is necessary. The longer we wait, the bigger hole we dig. The FED has already warned this can come back to hurt us even more. I really hope that they can make a decision way before January or February on behalf of the people.
ReplyDeleteI think to say that the election may have an effect on the need for another stimulus package is presumptuous because the only way I see that happen is if Trump stays in office- and even then, I don't think he will allow it to be approved. I say this because if Biden is elected into office, I don't think he is allowed to make any kind of changes until the start of 2021 when he is inaugurated; however, I am be wrong.
ReplyDeleteAs far as the economy goes, I think that by the time a stimulus package is passed in January or February that the economy will be in serious trouble due to holiday spending. I'm not sure if the economy can withstand the uncertainty, but I seriously doubt that some of the population will be able to stay afloat much longer without the necessary help they need.