Joe Biden proving to be a much better president than Donald Trump?
It is a myth that the Republicans manage the economy better - American inflation almost always happens under the GOP
Joe Biden has always played a key role in voting for US President Donald Trump ahead of the November election. However, apart from Trump's dominant response to the Covid-19 scandal - a failure that has left the economy much weaker than it would have been - it has kept a separate border on the question of who will better intervene in the US economy. Thanks to Trump, a country with only 4% of the world's population now responsible for more than 20% of Covid-19 deaths - a completely shameful result, given the American health system (albeit very expensive).
The idea that Republicans are better than Democrats in economic governance is a long myth to be dispelled. In our 1997 book, Political Cycles and Macroeconomy, the late (and great) Alberto Alesina showed that Democrats tend to dominate faster growth, job losses and stronger stock markets than those of Republican presidents.
In fact, inflation in the US almost always happens under the administration of the Republic - a pattern that has been going on since the publication of our book. The economic downturn of 1970, 1980-82, 1990, 2001, 2008-09, and, now, 2020 all happened when the Republican was in the White House (except for the double recession in 1980-82, which started under Jimmy Carter but continued under by Ronald Reagan). Similarly, the Great Recession of 2008-09 was triggered by the financial crisis of 2007-08, which also occurred on the GOP clock.
These trends are not random: unstable regulatory policies lead to financial crisis and inflation. Also, to sum up the news, the Republicans continue to pursue irrational monetary policies, spending as much money as Democrats, but refuse to raise taxes to make up for the budget deficit that will arise.
As a result of such negligence under President George W Bush, President Barack Obama and Deputy President Biden experienced the worst recession since the Great Depression. At the beginning of 2009, the unemployment rate in the US exceeded 10%, growth was free, budget deficit exceeded $ 1.2tn, and the stock market plummeted by about 60%. However, by the end of Obama's second term in early 2017, all those indicators had improved significantly.
In fact, even before the Covid-19 recession, US employment and GDP growth, as well as stock market performance, were better under Obama than under Trump. Just as Trump inherited a million dollars from his father, he just spent it on business failure, so he inherited a strong economic legacy from his predecessor, damaging it within a single word.
The price hike last August coincided with Biden's strong leadership, suggesting that markets have no fears about Biden's presidency, or the hopes of sweeping the Democratic Congress. The reason is simple: the administration of Biden would not have been able to comply with strict economic policies. Biden may be surrounded by progressive advisers, but they are all within the political arena. In addition, his deputy president, United States Senator Kamala Harris of California, is a moderate man, and the majority of Democratic senators would have resided in the new Congress more than a hundred than leaving their party.
Yes, Biden executives can raise small taxes on companies and 1% for high-income families, with Trump and the church republics just cutting to give sponsors and wealthy companies $ 1.5tn. But higher tax rates can lead to lower profits than corporate profits. And any cost to the economy could be more than just closing down gaps that allow for tax evasion and foreign exchange profits and production, as well as Biden's proposed "Made in America" policies to bring more jobs, profit and productivity home.
In addition, while Trump and other Republicans have never bothered to formulate an election policy, Biden has proposed a list of monetary policies designed to boost economic growth. If Democrats control both Congress and the White House, Biden's administration can pursue greater investment in homes, workers, and small businesses, as well as the use of job creation infrastructure and investment in the environmental economy. . They would not invest in tax cuts for millionaires, but rather in the education and retraining of workers, and in effective industrial and innovative processes to ensure future competition. Private businesses would not be intimidated by the president on Twitter.
Democrats are also demanding much lower wages to increase workers' incomes and spending, as well as reasonable laws to reduce carbon dioxide emissions. They will push for policies to restore certain bargaining power to workers, and to protect survivors from consumer financial institutions. And they will have a much more sensible approach to trade, immigration, and foreign policy, adjusting US relations and cooperation and following a policy of "cooperation" rather than losing the loss of vis-à-vis China. All of these measures may be appropriate for jobs, growth, and markets.
Although Trump runs as a popular person, he is a wannabe plutocrat - a popular person - and he rules that way. His economic policies have been a disaster for American workers and long-term economic competition. Trade and migration policies that were levied as measures to restore US jobs have had a different effect. "Death of despair" which unequivocally plagued white-collar workers and former employees did not fall under Trump; with more than 70,000 drug deaths in 2019, this American massacre continues. If the US is to fulfill its high-value jobs in the future, it will need to train its workers, not accept self-destructive protections and xenophobia.
The choice of US voters concerned about American economic prospects would not be clear. Biden, who has long been embroiled in a controversy over the blue collar, is the only candidate to run for president in recent history outside the Ivy League. He has a better chance than anyone else to rebuild the Democratic Alliance and restore the support of poor voters. For all Americans who care about their future and their children, the right choice this November would not be clear.
