Trump – Biden: Two Contradictory Views on the US Economy | World

10/04/2020 Business, Health, World



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President Trump and Biden gave conflicting policy visions for the world’s largest economy ahead of the March 3 election, according to AFP. The former Biden vice president targets low-income people, increases taxes for the rich and big business, and a series of policies similar to those of the Barack Obama administration.
“Mr. Biden’s plan is to expand existing social programs. On the contrary, President Trump is expected to expand the economic policy pursued by his administration in the first term,” said John Ricco at the University of Pennsylvania (USA). ) He told AFP.

Biden targets low-income people, Trump prioritizes business

The only thing they have in common is that they both promise to create more jobs for the American people. Candidate Biden outlines plans to create more jobs through a $ 4.1 billion budget to develop infrastructure and improve the use of clean energy.

Biden said the $ 4.1 trillion budget package was due to the plan to raise taxes from 21% to 28% for big business and the wealthy (who earn more than $ 400,000 per year) in a decade. following.

Meanwhile, Trump vowed to have restored what he called “the largest economy in history” in his first term with policies that boosted growth and reduced unemployment to the lowest level of the round. 50 years before the arrival of the Covid-19 pandemic.
However, the economic slowdown caused by Covid-19 has virtually eliminated all of Trump’s accomplishments, as millions of Americans have lost their jobs since March 2020. On the other hand, Democrats believe that the economic policy of reducing corporate taxes Trump only benefits big business and the rich.

Polls showed voters were on their side as the United States battled the Covid-19 pandemic, which has killed more than 209,000 people, the highest in the world. In addition, hospitalization for treatment of Covid-19 affects the re-election campaign of the president of the Republican Party just before the elections of 3.11.

In a report, economists Mark Zandi and Bernard Yaros of credit rating firm Moody’s said: “Biden’s view of low-income and middle-class people with tax bills will be preserved. but it will benefit significantly from increased public spending on education, health, housing and other social welfare programs ”.

On the contrary, if Mr. Trump is re-elected, the United States will probably see the extension of the corporate tax reduction policy approved by Congress in 2017, but “the benefits are mainly for households, businesses. businesses have high incomes, while the government has cut budget spending on health and a variety of other social welfare programs, “according to the Moody’s report.

Economic policy depends on which party controls parliament

After the elections, whether the two candidates can meet their economic policy commitments will depend on which party controls the majority in Congress. Currently the Senate is controlled by the Republican Party, while the Democrats control the House of Representatives.

Moody’s experts predict that if Democrats take control of Congress and the White House, as early as the second quarter of 2022, the percentage of employed Americans may rebound to a pre-pandemic equivalent. This rate is only reset in early 2024 for Republicans.

Companies closely follow

Although most of the two candidates’ economic policies are aimed at pleasing every American voter, the companies closely follow different business approaches, especially China.

Trump has been waging a trade war with China since 2018. In September 2020, about 3,500 American companies, including Tesla, Ford Motor, Target, Walgreen, and Home Depot, sued the Trump administration, opposing the imposition of tariffs by Washington on $ 300 billion worth of products made in China. The lawsuits against the government “illegally escalate” the trade war, negatively impacting billions of dollars in goods imported by US companies from China.

If elected, Biden can reverse Trump’s policies, but it is difficult to completely change him. The visions of candidates Trump and Biden have made many companies more skeptical about free trade, experts say.




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