Biden vs Trump: the economic pros and cons of each coming to power

Voters need to know what they voted for. Joe Biden and Donald Trump have very different economic agendas, and the election results will determine the future of the US economy. Washington examiner.

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Joe Biden:

Cons

Raising taxes. Biden wants to raise the corporate tax rate to 28%. This would make the United States less competitive in the international arena. It will also hurt workers, who bear most of the burden of corporate taxation due to job cuts and lower wages. Biden will reinstate compulsory health insurance tax: a regressive tax measure that punishes needy families unable to afford health care with thousands of dollars in additional taxes.

Legislation against gigonomics. Biden supports the adoption of anti-gigonomics (gig economy) legislation at the national level. It will undermine or completely destroy tens of millions of jobs across the country that provide people with flexible earning opportunities such as driving an Uber or freelance journalism.

New huge expenses. Biden is supporting $ 11 trillion in new federal spending over 10 years. This will mean either higher taxes for everyone, or, more likely, huge levels of debt that threaten US economic stability and burden future generations.

The road to socialist health care. Biden supports a "public option" in which the federal government competes with private health insurance providers. However, because the government can make rules, subsidize itself, and force doctors to agree to lower prices, this will eventually push private insurers out of business and leave public health for everyone.

The minimum wage is $ 15 per hour. Biden wants to more than double the federal minimum wage at a time when many businesses are trying not to close. A recent study predicted that by 2027 this will result in a loss of 2 million jobs.

Stricter rules. From technology to health care to the environment, the Biden administration is introducing countless new rules and a ton of new bureaucracy. A recent study found that Biden's combined tax and regulatory policies would result in 4,9 million fewer jobs, $2,6 trillion in national output, and a $6500 decline in median household income.

On the subject: How is the process of the transfer of presidential power in the United States

pros

Free trade. Biden made it clear that he would remove many of President Trump's trade tariffs and would generally pursue more favorable free trade policies. Since tariffs are essentially taxes on consumers and kill more jobs than they “protect,” Biden's approach may be good for the economy.

Immigration. Biden does not share Trump's objections to legal immigration. It is more likely to reinstate immigration programs for highly skilled workers, such as H-1B visas, which are beneficial to the economy but have been undermined by the Trump administration.

Donald Trump:

pros

Reduced taxes. Trump signed into law tax cuts and tax reform during his first term, which helped boost the economy. If re-elected, he is likely to seek additional tax breaks, including a payroll tax cut, which will boost job growth and allow workers to take over a large portion of their paychecks.

More deregulation. The Trump administration cut bureaucracy significantly during its first term, and that's part of what helped fuel the economy before the COVID-19 pandemic. With a few exceptions, more could have been expected from the second term.

Return to a strong pre-COVID-19 economy. Before the pandemic sent the world into a tailspin, the US had high growth rates, incredibly low unemployment rates, and rising wages and household net worth. This was partly due to the economic policies of the Trump administration.

What he won't do. Perhaps the best part of Trump's economic platform is what he won't do. He is against socialized medicine, higher taxes and job-cutting regulations.

Less federal spending and up toa lie. Both federal spending and national debt are projected to rise under Trump if he is re-elected, but at a significantly slower pace than if Biden wins.

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Cons

More duties. The president's duties damaged the economy and failed to protect jobs. Trump can be expected to continue pursuing erroneous protectionist policies if re-elected.

More immigration restrictions. Economists generally agree that legal immigration is good for the economy. Trump is a proponent of restrictions and is likely to take additional steps to limit legal immigration if re-elected. This will slow down economic growth.

According to Pew Research, 79% of registered voters see the economy as their top priority. Therefore, it is worth remembering the pros and cons of Trump and Biden's economic programs.

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