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I've heard a lot of people on the right, as well as members of the investment group I belong to on Facebook, claim that a Biden win will be the end of the economy and the stock market will crash. While there are some actions he could take that could hurt the economy, there is little reason to believe that is what will happen. First off, Biden was a representative for Delaware almost his entire political career, a state that is a corporate tax haven. Several companies are headquartered there and most large companies have an office there just to establish a physical footprint and take advantage of those corporate tax breaks. The company I work for used to have an empty office in downtown Wilmington for years for that purpose until we acquired a group from another company who are now based there.
Second, for all the name calling from the right of Obama being a socialist, he was actually a corporatist president. The DOW gained back over 150% during Obama's eight years. There are reasons for that had nothing to do with him, but he certainly could have gone the route of Hoover and FDR and implemented policies that crippled us into a depression for years. He didn't. There is no reason to believe Biden will. In fact, Biden is getting five times the campaign donations from Wall Street that Trump is. Wall Street bankers aren't in the habit of losing money. They wouldn't be dishing out all of this cash if they believed they'd suffer under a Biden administration. In fact, they believe he would bring more stability to the markets.
My only real concern economically with Biden is that he'll stupidly try to implement nationwide lockdowns again over COVID and that would put us back into a downward tailspin. I don't know that he actually has the power to do that as it would be up to the governors to comply, but he could certainly at least sway those of his own party to follow through. That's basically a gamble and Wall Street doesn't seem to be concerned by it.
Second, for all the name calling from the right of Obama being a socialist, he was actually a corporatist president. The DOW gained back over 150% during Obama's eight years. There are reasons for that had nothing to do with him, but he certainly could have gone the route of Hoover and FDR and implemented policies that crippled us into a depression for years. He didn't. There is no reason to believe Biden will. In fact, Biden is getting five times the campaign donations from Wall Street that Trump is. Wall Street bankers aren't in the habit of losing money. They wouldn't be dishing out all of this cash if they believed they'd suffer under a Biden administration. In fact, they believe he would bring more stability to the markets.
My only real concern economically with Biden is that he'll stupidly try to implement nationwide lockdowns again over COVID and that would put us back into a downward tailspin. I don't know that he actually has the power to do that as it would be up to the governors to comply, but he could certainly at least sway those of his own party to follow through. That's basically a gamble and Wall Street doesn't seem to be concerned by it.
Could A Blue Wave Boost The Economy? The Real Reason Why Goldman Sachs Is Optimistic
A recent note by Goldman Sachs's chief economist on the prospects of a 'blue wave' is really about one thing... and it's not economics.
www.forbes.com