The biggest question investors are asking is: if Biden wins, how can our economy continue to grow?
My answer: it’s easy.
Because IF Joe Biden becomes the 46th President of the United States, all he has to do it’s sit back, take it easy and stay out of the way.
Assuming the Senate is held by the Republicans, that should be relatively easy to do.
He can (and should) focus on unity and Kumbaya and all that good stuff to make everybody feel better, while simultaneously leave our economic policy as it is.
The good news, assuming the Republicans keep the Senate, is that this economy in its current upswing is rather hard to screw up. Assuming he doesn’t shut down the entire economy again, there’s little he can do to fundamentally ruin the economy given that Senates are the adults in the room.
The two basic policy initiatives that got our economy where it is today are lower taxes, and less regulation. It’s not rocket scientist. Friday’s October jobs report proved the unemployment rate fell to 6.9 percent, down from 14.7 percent in April. So, in six months time, the U.S. managed to get the unemployment rate below 7 percent. It took Barack Obama and Joe Biden 50 months to bring unemployment before 7 percent. Joe Biden spearheaded that “Economic Recovery Act” as it was known, which is not a promising sign.
He’d likely tell you it was a different time. 2008 was a systemic crisis and therefore nearly unprecedented. I’ll give him that. It was…and it creating a contagion effect that was difficult to combat. BUT, the threat of higher tax and additional regulation, did corporate America NO favors… something he’d be wise to remember.
The Trump administrations’ economists could also argue that 2020 is also unlike any other time in history — and is also a kind of contagion all unto itself. I mean, hey, it actually IS a contagion that we’re talking about! And yet, smart economic policies have resulted in 33.1% annualized economic growth for the third quarter (a quarter over quarter gain of 7.4%) and, it’s clear to most that a “V” shaped recovery is in the works.
So, what to do now?
Stay out of the way, Joe. Let’s just allow our economy to function on a kind of automatic pilot. We need to keep taxes low, and, stay out of the way when it comes to regulation. Don’t dabble too much– because the American people are on the side of economic growth.
Americans possess incredible creativity and work ethic. Let them work… while you stay out of the way and be the cheerleader for all sides that America needs.