With the election coming up, I thought it would be beneficial to talk about how the economy will be affected. Both parties involved in the election claim that they will make sure that the economy recovers from the hits it had been taking due to the current pandemic but it is hard to tell which side is telling the truth. As I'm sure everybody knows, politicians will say just about anything to ensure they get whichever elected position they are running for. Trump has claimed that he will raise wages for the middle class which would be beneficial to most of the American population but Biden claims that he will offer better opportunities for people to go to college and make it more available for people. It is up to us as United States citizens to determine who we believe will make a greater impact on the economy and who has the best interest in mind for the citizens.
https://www.usnews.com/elections/economy-2020
Whether or not Trump or Biden win, most financial analyst predict that there will be some sort of stimulus bill to be passed. How big it will be, will depend on who wins the the White House and who controls congress. Another thing to think about is taxes. Trump will likely keep the same level of taxes as his tax cut bill that was passed in 2017, or he will lower the taxes further. If Biden wins, then taxes will go up on people who make $400,000 or more a year. In the short run, Trump's tax plan will be better, but it the long run Biden's tax plan will be better. Biden has also said that he would like the government to put a lot of investment into infrastructure, which will create lots of jobs, but it will be due to government spending which will crowd out private investment. Will the tax increase offset the increase in government spending that Biden will do? I don't know, but it is something to keep in mind.
ReplyDeleteEvery single politician will make up policies that do not even end up being implemented. What we do know is that Biden would impose taxes on businesses and for people over a certain amount of income earned per year. If Biden ends up using this tax money towards the poor, it could make the standard of living much better as of the whole population. While Trump would not impose such taxes, which in turn would cause the rich to get richer and poor to stay where they are financially. This would help raise the overall GDP due to increased investments and new businesses but would keep the declining trend of unemployment rate
ReplyDeleteI believe that the economy is likely to benefit from either side. While each has very different policies, I believe that both will really make sure some of their first acts coming in January (or November for Trump) will be focused on getting America back on track by combating Covid and rebuilding a post-covid economy.
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