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Despite President Trump’s promises that Joe Biden will shut down the economy if he wins on Nov. 3, 2020, “Goldman Sachs is telling its clients the exact opposite,” according to a CCN report. Based on comparisons between the two candidates’ proposals, the investment banking company believes economic recovery would occur more rapidly should the Democrats win the election.
Goldman Sacks chief economist Jan Hatzius indicated they would likely upgrade their forecasts if a blue wave wins Capitol Hill and the White House in November.
When discussing economic recovery, the bank said the Biden proposals could render higher taxes and regulations, which could eat into corporate profits and earnings for wealthy families.
Moody’s Analytics economists Mark Zandi and Bernard Yaros concur, “Joe Biden’s economic agenda would spur more growth than Trump’s.” Their review found the former-vice president’s economic recovery proposals — if enacted – would create 7.4 million more jobs than the president’s.
Based on Biden’s data, Moody’s believes the economic recovery would take place by the second half of 2022. Whereas 2024 is the likely scenario based on Trump’s plan.
Earlier this year, many Wall Street advisors doubted a Democratic sweep in November, but as the polls changed, indicating Biden has a sizable lead over Trump has changed their thoughts on the matter.
The UBS Group AG appears to be like-minded. The group’s strategists wrote this to their clients:
We view a blue wave as the most likely outcome of the election.
Written by Cathy Milne-Ware
CNN: Goldman Sachs: A Democratic sweep would mean faster economic recovery; Matt Egan
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