What Joe Biden’s Victory Means For The Economy - YouTube

America's financial future was definitely on the ballot this year.

Joe Biden is set to inherit an economy that's been absolutely

battered in 2020.

There are things that are happening that are very much feeling like a

runaway train when it comes to the US economy.

The COVID. Pandemic has exposed really deep structural flaws in our

economy. We have a health crisis, an economic crisis, a racial

justice crisis, a climate crisis, we need to come together to solve

these crises, to solve them.

As Americans, we've seen record unemployment, businesses declaring

bankruptcy, an eviction crisis, not to mention the fact that we're

heading into winter, a time when covid-19 is expected to kill tens of

thousands more Americans, devastate hospital systems nationwide and

potentially lead to another round of rolling lockdowns.

Biden has a real plan to focus on technology

and staying competitive.

Biden is looking to spend two trillion on green energy.

It starts with doing everything possible to get the Covid-19 under

control so that we can reopen our businesses safely and

sustainably, resume our lives, put our put this pandemic behind us.

Biden White House with a Democratic Congress will enable

tax reform, a large covid package in the first quarter,

health care reform potentially.

It's all about kind of the details here and it's all about how

anything is going to get done in Washington that appears to be very

much on the path to gridlock again.

So a lot of big ideas from Biden on the campaign trail.

But will his plans actually work?

And what does a Biden White House mean for the economy?

The president elect of the United States of America, Joe

Biden. Biden locked in his victory by winning the Electoral College,

but the Electoral College doesn't really give us a full picture of

the record number of Americans who voted and why certain groups of

people voted the way that they did based on exit polls.

Let's take a look at who showed up to vote this year in terms of

household salaries, the majority of voters reported making 50000 to

200000 dollars a year.

Seven percent of voters made over 200000 dollars.

Biden was the choice for voters making under 100000 dollars, while

the majority of those making more than that voted for Trump.

Trump gained a little support among men, when you compare 2020

results to 2016. While the majority of women, a key voting bloc in

recent years, voted for Biden.

Going into this election, we were and are in the midst of what's

being called a she-cession that is that Since covid started, women

have been hurt far, far worse economically than men have in terms of

losing their jobs, in terms of having to balance trying to homeschool

their children, take care of their homes and work full time, which is

virtually impossible.

We must, must, must do something for women.

And I think that is reflected obviously in the high turnout and it's

reflected in the win for President elect Biden.

Everyone is impacted by the fact that women were the majority of the

workforce just at the beginning of this year and now are dropping

out. It's it's going to affect our GDP.

It's going to affect our companies.

It's going to affect our ability to innovate.

It's really detrimental to all of the economy and to all workplaces.

In 2020 pandemic policy is economic policy.

So a big part of his message on the campaign trail came down to how

he was the better person to combat the pandemic's Devastating impact

on the economy. Experts say that delivering on that promise fast is

going to be key. The big rock for now in our rucksack is a

stimulus deal.

A stimulus plan under President Biden is likely to include provisions

similar to the last one extended crisis, unemployment programs, an

extension of the paycheck protection program.

Massive scale testing distribution across the country, plus new

measures like a national contact tracing force and covering health

insurance costs for the newly unemployed.

Biden is also expected to push for emergency aid to state and local

governments, an issue that's turned partisan in recent months.

Republicans have a big problem with sending Democratic states

additional financing.

They tend to view this as poorly run, poorly managed budgets at the

state level. The stimulus deal everyone's been waiting for.

That's only one part of Biden's pandemic recovery plan.

What he actually wants is something much bigger for the country to

spend over seven trillion dollars on things like infrastructure,

which includes the creation of 10 million clean energy jobs, plus

spending on housing, education, economic fairness and health care.

He's bundled all his ideas under the slogan Build back, better build

back better. Trillions of dollars in new spending, all targeted at

longer tailored fiscal stimulus, tends to be thought of over a four

to five year period.

And it would be very focused on integrating ideas and initiating with

Republicans of bridging public private partnerships to

achieve infrastructure goal.

Job creation is key to Biden's plan to combat covid in addition to

millions of clean energy jobs.

He also wants to create 100000 new jobs in the public health sector

to beef up our medical and caregiving workforce and to make sure

there are more manufacturing jobs, ones that are unionized, not least

of all, to ensure that we have robust domestic supply chains for

essential goods. A problem we didn't realize was quite so dire until

this year when we saw a wave of virus induced shortages of critical

items. I think manufacturing, when you look at what he's looking to

do with procurement and supply chains, the manufacturing sector, and

pay back places like Pennsylvania, Ohio, Michigan, I think

manufacturing is going to be a real focus.

Biden's infrastructure plan is a big part of his proposal, which

Moody's Analytics thinks could generate eighteen point six million

jobs in the next four years.

If Democrats take the Senate, two of the seven trillion dollars he

wants to spend is on infrastructure, clean energy and getting

Americans to work in energy fields.

The Chinese have decided that green energy technology, climate

change is a growth engine.

You know, we used to think of it as somehow slowing growth to focus

on all these things.

But the Chinese have clearly identified this space as a growth

industry. I think the Biden administration sees it both in terms of

economic growth, but also In terms of political agendas and I think

over the long term, the energy sector, at least the green space, is

going to be a big growth factor.

Addressing the gaping racial wealth gap is the final pillar of Biden's

plan for the economy, an issue that was laid bare thanks to the

pandemic. Inequality, income inequality, access to opportunity,

diversity and inclusion is a big piece of all of the social

disruptions we have seen throughout the summer.

His plan includes tens of billions of dollars invested in minority

owned businesses and a college affordability program, paving the way

for a free public university education for families with an income

under one hundred and twenty five thousand dollars.

Biden has also promised that 40 percent of that two trillion dollars

he wants to invest in clean energy will go to disadvantaged

communities. Remember that nearly 60 percent of low income households

supported Biden. To pay for all of this, Biden wants to tax higher

income Americans and corporations.

He wants to raise taxes for households with incomes above four

hundred thousand dollars a year, plus limit their deductions.

And he's talked about boosting the corporate income tax rate to 28

percent from 21.

But remember, Biden can't deliver on any of these promises.

Not even the fiscal stimulus that people like Fed Chair Jerome Powell

are requesting without the approval of Congress.

For economic policy is a great example of how presidents may have

amazing ideas, but they need Congress.

Will Republicans come along and play ball?

I'm unsure about that, as we talk today.

NBC News projects that in the upcoming 117 Congress, House Democrats

will keep the majority and the Senate is still in play.

The 2020 election was host to 35 Senate elections as a publication.

Democrats in the Senate flipped Colorado and the late Senator John

McCain's seat in Arizona, while Republicans flipped the Senate seat

in Alabama. There are races too close or too early to call in Alaska,

Georgia and North Carolina.

The special Senate race in Georgia will be going into a runoff on

January 5th in the event of a 50 50 split in the Senate, Neither

party would have control and the VP would likely become the tie

breaking vote if necessary on specific legislation.

Democrats were hoping to become the majority in the U.S.

Senate. They were hoping to be that push that they can get checks

into people's hands for coronavirus relief in another round of checks

for coronavirus relief.

But that doesn't seem to be happening right now if there is a divided

government. You may not see something like that in the next year or

two. If Republicans control the Senate majority and

Democrats control the House and Biden is in the White House, it would

really argue for very little policymaking.

That expected gridlock on Capitol Hill has been welcome news on Wall

Street. Stocks surged following the election even before Pfizer's

good news about a Covid-19 vaccine was released.

The Dow, S&P and NASDAQ all posted their biggest weekly gain in seven

months at the end of election week.

Wall Street hates change.

You know, Wall Street wants to know the rules of the game and then

they want time to make facts based on those rules.

So what I hear most from folks on Wall Street is less about being

concerned with specific policies and being more concerned in general

with volatility.

The stock market isn't the economy.

And while Trump may have used it as a report card for the four years

that he was in office, the priority for most Americans is what the

jobs report looks like and more importantly, where their next

paycheck is coming from.

Now, to be clear, the U.S.

economy is on the road to recovery.

Job growth was better than expected in October.

The unemployment rate fell sharply.

And after its worst quarter in history, the economy came back strong

in Q3, growing at its fastest pace ever.

But the U.S. faces a tough fourth quarter.

We essentially bought the Q3 recovery with stimulus checks and with

boosted unemployment benefits.

And now, well, coronavirus cases are surging across the U.S.

We're still waiting for a fresh injection of cash from a new stimulus

deal. And jobless claims continue to come in higher than the Great

Recession peak of 665000.

So taking this data into consideration, President elect Biden, among

others, expect our recovery to look something like the letter K where

the richest Americans rebound quickly, perhaps do even better than

they did pre covid and lower income Americans keep on suffering.

So what does this mean for the next six months?

Experts tell us that the White House alone actually has little to do

with how the economy will play out in 2021, regardless of who is in

the White House are expecting in the next few weeks to the next

couple of months to be a time of increased covid cases, which will

call for additional restrictions on engagement in local economies

to try to keep the numbers down.

And that is not a White House decision.

That's a city. And sometimes state Decision that's made so how

GDP continues to recover, how the economy continues to recover is

very much tied to if people are able to spend money.

I think the biggest difference would be if there's a way to get a

fiscal stimulus policy passed during the lame duck ahead of the

Christmas season that where consumer spending should be going

up. That would potentially do some recovery in a way that absent a

stimulus, we when we won't see, I think employers are going to be a

bit gunshot to to go out there over these next 12, six

to eight weeks to to try and bring on new people without some

assurance that they're going to get a stimulus deal.

But the question is, let's say McConnell goes down that that road, he

passes through his stimulus bill, which may not include stimulus

checks, individual checks for families, covid relief.

Where will Joe Biden stand on that and where will Nancy Pelosi stand

on that? She still maintains that currently is the House, that House

speaker and House majority leader.

So that's the dynamic of the covid relief talks are going to be

fascinating to see as we get through the next few months into next

year.