Here Are the Differences Between Trump and Biden's Economic Policy
President Donald Trump and Joe Biden have different views regarding issues in the US economy, according to Barron's.
- President Trump is advocating for aggressive growth and his America First agenda.
- Biden has proposed expanding government efforts to address inequality and invest in people, infrastructure, and the environment.
President Trump's agenda is designed to let the US aggressively expand the private sector (the supply side of the economy). Trump attempted to push his agenda by cutting corporate taxes and regulations. The success of these tactics is controversial, but it is worth noting that the economy was strong prior to the pandemic. His America First initiative has focused on economic policy abroad. America First resulted in an ongoing trade war with China and other conflicts with the European Union, Canada, and Mexico.
Trump's unpredictability in his actions has also contributed to unprecedented volatility in the US financial markets. It will be interesting to see how Trump acts since reelection wouldn't be a possibility in a second term.
Biden's agenda focuses on inequality in the US economy. The average household in the top 1 percent has 1,250 times more wealth than the average household in the bottom 50 percent. Biden's push for redistribution is being driven by early evidence that it could help support stronger economic growth. Biden has also called for expanding education, healthcare, infrastructure, environmental, and additional public spending. Biden would finance this spending plan by reversing Trump's tax cuts and raising income taxes.
However, a large deficit would probably remain under a Biden administration. There's no question that this spending is for a good cause, but would it really reduce inequality and create opportunity? On the other hand, how would higher taxes, increased government spending, and tighter regulation affect the private sector? These questions are important, but might be answered depending on the results of the election in the near future.
Biden's global economic policy would attempt to work with US allies in better faith. Biden would maintain the pressure that Trump has put on China.
The result of this election will define the trajectory for the US and global economy for the foreseeable future.