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What Happens to the Economy If Biden Wins? (What if Trump Wins?)

You’re probably sick of hearing about it by now, but yes, I’m going to talk about the presidential election for a second (I honestly don’t think I’ve ever done this over the course of my 10-year blogging career). It’s a genuine question I’ve had, and in exploring the answer I thought maybe you’d like to come along for the ride! — “What happens to the economy if Biden wins?” And on the flip side, what if Trump wins again? Will our country be in a better place with one vs. the other?

Of course nobody really knows, but based on the economic policy each candidate is proposing, economists and fiscal experts can take a pretty educated guess about what will happen in the next four years.

First, Understand There’s More Than Just Economic Growth at Stake Here…

Before I even start with this analysis, I want to be sure we’re all clear. No one should vote purely based on the economic plan of each presidential candidate. There are plenty of other important issues at stake with this vote. Things like:

  • abortion
  • same-sex marriage
  • immigration
  • climate change
  • Obamacare
  • the military

…among many other recent issues like the black lives matter movement, the police force, COVID-19, and the integrity of future elections.

So, when you’re voting (and you should ABSOLUTELY go and vote!), consider all the stances of each party when you make your decision and cast that ballot.

The Economic Proposals

What plan does each candidate have? What have they put out there for all of us to look at and review?

what happens to the economy if Biden wins Joe Biden’s Economic Plan

If Mr. Biden becomes president, he says he is going to immediately do the following:

  • Stop the virus (slow re-openings, focus on testing capacity and ensure everyone has proper PPE)
  • Launch a task force to get money out the door to people who need it – fast
  • Bring the leaders of Congress together to build the next stimulus deal
    • additional checks to families
    • forgive student loans
    • increase social security checks
    • provide emergency paid sick leave to everyone who needs it
    • ensure all COVID-19 testing, treatment, and vaccines are free
    • provide fiscal relief to states in need, especially New York

Joe also states many “visions” for the country (racial equality, caregiving, schooling, ending gun violence, etc.). There are too many to list, but here’s the link.

President Trump’s Economic Plan

Mr. Trump has already been working his plan for the past four years, so many of us have already heard it and seen it. The assumption is that he’ll continue to press forward with the plan he’s already set:

  • Continue to re-open the economy while monitoring the COVID cases, so we don’t get into another spike
  • A new stimulus deal for $1.6 trillion
  • The ‘America First’ energy plan
  • Smart Trade, Not Stupid Trade – uses protectionism to defend U.S. industries from foreign competition
  • Repeal and replace Obamacare
  • Reduce the national debt by eliminating waste in federal spending
  • Keeping taxes low – for individuals and corporations
  • Sending illegal immigrants back to their home countries
  • Spend on infrastructure to improve the country and provide jobs

The Top Opinions of Biden’s Plan

What are the top reviews of Joe Biden’s plans?

  • US News – Many puts and takes, pros and cons of the plan and its impact on the future economy. Overall, the article states that investing in fundamentals (ie. solid companies with a strong potential for growth, regardless of the political tailwinds or headwinds) are typically much more important than presidents and their policies.
  • The Economist – Believes Biden wouldn’t totally flip America’s progress on its head. Instead, he’ll improve the fortunes of the majority.
  • The Globe and Mail – The market is likely to continue its track upward, especially with a chance for a larger stimulus under Democratic leadership. But, there is a lot of uncertainty in the world – there are many other factors at play.

The Top Opinions of Trump’s Plan

And how about President Trump? What is the response to his plans?

  • The Atlantic – “U.S. alliances would likely crumble, the global economy would close, democracy and human rights would be in rapid retreat.”
  • LPL Financial – Trump’s tax plans would continue to drive the economy in a positive direction, but tensions could ramp higher and negatively impact growth.
  • Proactive Investors – “Trump’s re-election could present downside risks from civil unrest, political instability, and poor management of the coronavirus crisis.” Risk of a double-dip recession.

What’s Your Take? What Happens to the Economy If Biden Wins?

It seems that quite a few people are asking the same question as me — “What happens to the economy if Biden wins?”… There’s plenty of literature on it. But, even though I know the news is often skewed toward a Democratic opinion, I was surprised how many were in favor of his policies and believed that they would continue to drive the type of growth we’ve seen under the Trump administration.

What’s your take? Would Biden totally tank the economy like President Trump claims? Or would we all live in a better world under Biden’s regime?

Investing Money Save Money

AUTHOR Derek

My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.

3 Comments

  1. I am honestly concerned if Biden wins and we will have to sell our home and go down to one vehicle. While Obama was President, we came very close to this situation. Since Trump took office, we have plenty in retirement, investments came back to where they once were and we have the savings account we’ve been striving for. I know our savings/investments is not the only item I should be considering, however, we have one child at home still that will be attending college within the next two years. We need to have a savings to get through those next few years.

    The idea that ACB will reverse Roe Vs. Wade is unnerving, however, I do not believe that she will do such a thing. I cannot believe the amount of women who can’t praise a woman who was first in her class and worked her butt off in her positions that she gained through knowledge. She’s a successful woman. She’s not at home barefoot taking care of all of her children and waiting on her husband.

    I call it a gut feeling. There is something off about Biden. He’s been through a lot in his lifetime. I just don’t believe he remembers what it’s like to be without and struggle. Not many politicians do. But I wouldn’t try to pretend like you remember either.
    And just like any other article I have read. There’s always the positive, nothing negative about Biden and all negativity for Trump.
    People would do well to go back and watch interviews of all these news reporters or celebrities’ when they loved Trump and some wanted him to run for President.
    Either way we are screwed as a Country. Not everyone is going to be happy regardless of who gets elected and if there are riots. They will be detrimental to our Country. Instead of all the news and celebrities spewing hate for one party and not the other, they should be trying like heck to bring us back together. Otherwise, we are in for some really bad months in the future.

    • Hi Melissa. Powerful comment. Thank you for that! When I write about politics, I try not to take a hard side. That’s up to my readers to decide. Besides, I’m not a politics expert. I’m a money expert! 🙂

  2. CROOKED POLITICIAN AND ONLY ANTI-GOD POLICY’S WILL BE PUSHED.

    HOPE GOD PUNISHES HIM IN HELL FOR STEALING THE ELECTION.
    I GUESS WE NEED TO TEACH OUR CHILDREN TO STEAL IS OK. DRUG ADDITION IS OK. THE WHOLE FAMILY CAN STEAL AND DADDY WILL GIVE THEM A PARDON.
    IF HUNTER AND BROTHER GETS PARDON DO THEY GET TO KEEP ALL THE BIDENS STOLE.

    BIDEN IN MY OPINION IS THE ANTI CHRIST WE ALL HEARD ABOUT. ARE ALL DEMOCRATS ATHIEST, IT SEEMS TO BE THE NORMAL.

    I HAVE MADE THE DECISION NEVER TO VOTE AGAIN, BECAUSE WE HAVE A CROOKED GOVERMENT. I GUESS THAT WHY THE USA IS NEVER MENTIONED IN THE REVELATIONS.

    BIDEN STOLE 16MILLION SINCE HIS PRESIDENCY AND WE PUT THE CROOKED BASTARD IN CHARGE.
    A MAN WOULD STEAL A LOAF OF BREAD TO FEED HIS FAMILY AND FACE MORE LITIGATIONS THAN BIDEN.
    I GUESS NOW WE ARE UNDER CHINESE CONTROL.

    I PRAY THAT WHAT HARM IS CAUSED TO THE USA WILL BE LAID ON THE CROOKED BIDEN FAMILY 10 FOLD. WHAT AN UNGODLY SON HE HAS RAISED, AND HAS NO BUSINESS IN ANY OFFICE.


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