by Maurie Backman | Updated July 25, 2021 - First published on Oct. 21, 2020
Many or all of the products here are from our partners. We may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.
The U.S. economy is currently in shambles. Can a Biden presidency save it?
The U.S. economy has been in a major slump ever since the coronavirus pandemic took hold. Millions of Americans have filed unemployment claims and thousands of small businesses have permanently closed their doors in the last seven months. And as national COVID-19 case numbers surge, health experts are gearing up for that dreaded second wave. Unfortunately, it's likely to hinder the economic recovery we -- and our bank accounts -- so desperately need.
In fact, the state of our economy is one of the most pressing issues in the upcoming presidential election -- that, and how to revive it. President Donald Trump has warned that if former Vice President Joe Biden is elected, he'll shut down the economy and so increase unemployment. But investment banking giant Goldman Sachs feels differently. It argues that a Biden win this November could be just the thing to save the economy.
Tips and tricks from the experts delivered straight to your inbox that could help you save thousands of dollars. Sign up now for free access to our Personal Finance Boot Camp.
By submitting your email address, you consent to us sending you money tips along with products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Statement and Terms & Conditions.
Goldman Sachs believes a so-called blue wave, in which Democrats gain control of Washington, will help the U.S. economy. It advised clients that a Democratic sweep would see the economy recover more quickly than it would under Republican leadership. Though Biden is proposing higher taxes for corporations, he's also promised a fair amount of government spending. The investment bank thinks that spending, in conjunction with low interest rates, could help bust the economy out of its slump.
Goldman Sachs has also stated that a Biden win would increase the likelihood of a stimulus package worth at least $2 trillion. This could also be instrumental in helping the economy. For months, lawmakers have been haggling over stimulus spending, and Democrats have consistently pushed for a much higher price tag than Republicans. The more money that's pumped into a stimulus deal, the more economic aid Americans will receive.
All told, Goldman Sachs has a lot of faith in Biden's ability to revive the economy, and they're not the only ones. Moody's Analytics also says that our economic outlook is stronger with a Biden win. Specifically, Moody's found that a Democratic sweep has the potential to create 18.6 million jobs -- 7.4 million more than the Republicans. Furthermore, Moody's says the economy could return to full employment during the second half of 2020, which is nearly two years earlier than it would under Trump.
It's fair to say that 2020 has been a wild and turbulent year. Whoever's elected president will have the daunting task of saving a hammered economy, while also protecting Americans' health in the face of a relentless pandemic.
Those who are planning to hit the polls this election season should read up on both candidates' economic proposals. There are also many other issues that come into play, like housing, crime, climate change, and tax reform. Much of this information can be found on each candidate's campaign site, or by tuning in to the final presidential debate, currently scheduled for Thursday, Oct. 22. That knowledge will put voters in the best position to make informed decisions.
If you have credit card debt, transferring it to this top balance transfer card secures you a 0% intro APR into 2023! Plus, you’ll pay no annual fee. Those are just a few reasons why our experts rate this card as a top pick to help get control of your debt. Read The Ascent's full review for free and apply in just 2 minutes.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.
Copyright © 2018 - 2021 The Ascent. All rights reserved.