The economy before COVID was booming thanks to Trump’s economic policies. Even now, the economy is rebounding following the doldrums of the pandemic-induced recession.
However, if Joe Biden is elected, this economic recovery will be stymied. That prediction comes from a Stanford University study on the economic impacts of Joe Biden’s economic policies.
Biden’s policies on the economy would bring the country back to the slow growth we saw in the Obama years.
The Wall Street Journal reported the following:
“Overall, the authors estimate that the Biden agenda, if fully implemented, would reduce full-time equivalent employment per person by about 3%, the capital stock per person by some 15%, and real GDP per capita by more than 8%. Compared to Congressional Budget Office estimates for these variables in 2030, this means there would be 4.9 million fewer working Americans, $2.6 trillion less in GDP, and $6,500 less in median household income…
Mr. Biden is also proposing substantial increases in business tax rates that will raise the cost of capital. The former Vice President likes to say he’d only raise the top corporate tax rate to 28% from 21%. But so-called pass-through entities (often small businesses) employ more than 40 million Americans, and most pay taxes at the individual tax rate.
Biden’s plan to raise personal income and payroll tax rates would push their federal rates from below 40 percent to, often, above 50 percent…
Biden would also raise capital costs by phasing down bonus depreciation in the 2017 tax reform, and he’d raise labor costs by imposing the 12.4% Social Security payroll tax to income above $400,000.”
In the early morning hours following election day in 2016, the media warned that the stock market would crash when the polling returns showed that Trump was going to win the presidency.
The Dow futures were way down, even before the opening bell. However, the stock market went up that day and has never looked back, outside of the early days of the pandemic.
The unemployment rate has stayed consistently under 4% in the time he has been in office, and it has only been because of the pandemic that this number has risen.
Hourly wages were growing at 3% per year, manufacturing jobs in 2019 were higher than any year during the Obama years, and 4,000 coal jobs were added.
Barack Obama claimed that you would need to use a magic wand to see the Gross Domestic Product increase by 3% or higher again. He and many of his economic advisers referred to slow GDP growth as the “new normal.”
They were wrong.
It is amazing what can happen when you cut taxes and regulations and encourage investment.
President Trump has cut more job-killing regulations than any president in American history. He has reversed the tide of the Obama years when regulations and proposed rules amounted to nearly 90,000 pages on the Federal Register when he left office.
The Council of Economic Advisers released a report showing the success of the deregulation policies during Trump’s time in office, saying “before 2017, the regulatory norm was the perennial addition of new regulations. Between 2001 and 2016, the Federal Government added an average of 53 economically significant regulations each year. During the Trump administration, the average has been only 4.”
The report continued: “The effect, relative to a regulatory freeze, of removing 20 costly Federal regulations has been to increase real incomes by 1.3 percent. In total, this is 2.1 percent more income—about $3,100 per household per year—relative to the previous growth path.”
The choice is clear: Elect Joe Biden, and we go back to the Obama economy of slow growth and stunted wage gain. Elect Trump and the economy will return to its pre-pandemic highs. Let’s hope for the sake of our wallets that Americans choose Trump.