Expert economists believe that Biden’s plans of including trade and immigration will counter the effects of new regulations and taxes as well as the impact of the pandemic.
Economists are of the opinion that Biden’s strategy will add around 11 million jobs very quickly while helping the economy recover $670 billion that it lost to the pandemic.
The chief economist of Moody’s Analytics says that government funding is the best way to recover full employment rapidly and Biden’s policies will allow us to do that. Moreover, he also focuses on aiding low and middle-income households that have suffered the most during the coronavirus crisis.
However, whether Biden’s policies can be implemented depends on the makeup of the Senate. This will not be known until the runoff races scheduled for January 2021.
Moody’s Analytics reports that if the Senate is under Republican control, then economic growth will only be slightly better than what it was before. Moreover, the economy can only increase from 3.2% to only 3.5% a year and around 9.8 million to 11.6 million jobs can be added.
However, if the Senate is under Democratic control, economic growth would amount to 3.8% whereas jobs would increase to 14.1 million.
Biden is strongly in favor of another stimulus relief package to counter the effects of the pandemic to support small businesses as well as financially struggling states. It will also include an additional federal bonus and stimulus checks for households as well as weekly unemployment benefits.
According to his plan, he will also be spending $7.3 trillion in the next 10 years. This will include affordable child care, tuition-free community college, encouraging consumption of American products, boosting manufacturing, a clean energy economy, infrastructure improvement, and affordable housing.
He will also be increasing the taxes including 12.4% social security payroll tax for Americans earning above $400,000 and the corporate tax rate will be raised from 21% to 28%.
Additionally, Biden will also rescind the ban on travel from Muslim countries as well as the limit on the number of refugees allowed in the country.
Biden also wants to resolve the trade war with China, decreasing many of the tariffs imposed on Chinese imports and increasing consumer spending.
He also aims to address the issue of climate change and has a strategy to encourage clean energy and a green economy.
He also approves of the Democrats’ plan to increase the federal minimum wage from $7.25 to $15.