Even though Joe Biden is leading in most of the national polls, Trump is receiving more votes when asked which of the two would be better for the economy of the US.
As reported by The Guardian, most of the US recessions happened during the Republican administrations including the years 1970, 1980-82, 1990, 2001, 2008-2009, and currently 2020.
This is a consistent pattern that is observed because the Republicans do not impose strict regulatory policies that result in financial crises and recessions.
Moreover, Republicans are reported to spend the same amount that Democrats do, however, they do not increase taxes to counter the following budget shortage.
George W. Bush also made similar mistakes during his presidency which resulted in one of the worst recessions in US history. The unemployment rate of the country had exceeded 10% and the budget shortfall had increased to $1.2tn. In addition to this, the stock market had declined by 60%.
However, despite this, under the administration of President Obama and Vice President Joe Biden, these factors were able to improve rapidly.
Before the recession caused by COVID-19, the employment rate in the US, as well as GDP growth and the stock market were performing far better under the Obama administration than when Trump took over.
Biden will also be increasing the marginal tax rates on corporations as well as the top 1% of households.
An increase in the tax rate will only slightly affect the profits of corporations. Moreover, by addressing the problems of tax avoidance and companies moving profits and production abroad, the economy can be significantly improved.
Biden has also presented a ‘Made in America’ proposal which contains a set of policies to shift the production, profits, and jobs back to America.
In addition to this, this time around, Trump and his administration do not have a policy platform. However, to increase the economic growth of the country, Biden has come up with a set of fiscal policies.
Moreover, the Biden administration also promises to develop a larger fiscal stimulus plan if they can take control of the Congress and the White House. This plan focuses on households, workers, and small businesses.
Additionally, they have also addressed the problem of the minimum wage, which the American public has raised concerns. They will be raising the minimum wage to increase labor income and consumption.