Biden v. Trump on Economic Growth
Moody’s Analytics just released its analysis of the economic impacts of the Biden and Trump tax and spending plans. The Biden plan gets superior results for economic growth and for productivity and helps low, moderate and middle-income wage earners and their families. It analyzed four scenarios: Biden sweep, Trump sweep and split government with either Biden or Trump as chief executive.
With split government, very little changes. With Biden and a Democratic sweep, GDP growth rates are 4.2% for the first part of the decade and 2.9% annually for the second half of the decade. With Trump and a Republican sweep, GDP growth rates are 3.1% for the first part of the decade and 2.4% annually for the second half of the decade.
With Biden and a Democratic sweep, jobs increase by 16.5 million for the first part of the decade and 21.million for the second half of the decade. With Trump and a Republican sweep, jobs increase by 9.3 million for the first part of the decade and 12.9 million for the second half of the decade.
With Biden and a Democratic sweep, real disposable income increases by .5% annually for the first part of the decade and .9% annually for the second half of the decade. With Trump and a Republican sweep, real disposable income decreases by .5% annually for the first part of the decade and grows by 0.7% annually for the second half of the decade. What is real disposable income? That’s what you get after inflation and after taxes.
Look at the rest of the indicators and you’ll see that the Biden plan performs better than the Trump plan on nearly every important indicator. The reasons for its better performance are: better policies on infrastructure, child care, health care, education, clean energy, immigration, trade and equitable tax policies.
Make sure you are registered, make sure you vote, and be prepared to defend our democracy if it is needed.
Lucien Wulsin
9/26/20