The results of the election can have an effect that reaches farther than just the United States. Europe does a lot of business with the United States and the future policies of the next president can have a large impact on economies other than our own. The increased number of mail-in ballots is causing the results to take longer and the volatile changes caused by the difference in poll and mail-in votes has created a stir. While the U.S. stock market has been going strong, consumer confidence could take a hit abroad. The continued legal actions to drag out the election will only increase the market's volatility. If Trump is re-elected, then a trade war could erupt between the U.S. and Europe. In 2019, Europe exports to the U.S. equaled about 384 billion euros; while the U.S.’s imports to Europe were only worth about 232 billion euros. Europe’s surplus means that they have a lot to lose if Trump were to impose tariffs on their goods. If Biden were to win the election, there following tax changes in the U.S. could have an effect on Europe. Biden may undo Trump’s tax cuts and increase taxes while pushing expansionary spending; this has the potential to lead to negative market growth. The U.S. economy could have many, potentially negative, global effects due to its important role. Other sources believe that the increased public spending could boost global markets and increase equity performance. Ultimately, there are more than just U.S. citizens who will be impacted by the results of the presidential election.
anytime that a giant economy such as the US begins to implement new policies their is always a effect on the whole globe as a whole whether these changes will be negative or positive is yet to be determined, but in my opinion I agree with the article that it will boost equity performance
ReplyDeleteI agree that it is undetermined what will happen with trade in the future given we don't know if Trump is going to try to stay in office. Biden being the elected president, I feel that markets will be more stable in the future with him in office, because he is more predictable than Trump.
ReplyDeleteThe possible difference between Trump and Biden is how they approach trade. Trump approached trade in an aggressive, damaging way that may take years to repair international relations and the U.S. reputation. Biden can be the exact opposite in being more open on trade or try to relax some of Trump's more harsh policies or rhetoric done the past 4 years. We won't know until he is inaugurated into office. But either way, the U.S. will spend the next 4 years to instill more confidence in their trading partners and allies.
ReplyDeleteI think it will be interesting, while Trump was aggressive in trade and international relations, he did hold other countries accountable that have stepped over us. Certainly, Biden is more predictable and will do much better in Europe trade wise. But other places in the world might not thrive under Biden administration.
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