Goldman Sachs says Biden win, blue wave would lead to surge in economic growth
On the same day President Donald Trump's tweet sent the stock market crashing, Goldman Sachs issued a statement saying it would upgrade market forecasts if Biden wins the election in a blue wave.
While Joe Biden would increase taxes on corporations limiting earnings, the loss will be made up by the massive government spending and stimulus that Biden will implement.
CNN had this to say about Goldman's positive outlook for the US economy under a Biden win.
Goldman Sachs wrote that a blue wave would "sharply raise the probability" of a fiscal stimulus package of at least $2 trillion shortly after the January 20 inauguration. The bank also cited Biden's longer-term spending plans on infrastructure, climate, health care and education.
Taken together, this spending "would at least match the likely longer-term tax increases on corporations and upper-income earnings," Goldman Sachs wrote.
"It would likely result in substantially easier US fiscal policy, a reduced risk of renewed trade escalation, and a firmer global growth outlook," the report said.
Business Insider mentioned that a Democratic wave and Joe Biden victory are becoming "more likely" after Trump's coronavirus sickness and debate performance.
But the Goldman Sachs projections shouldn't come as a surprise. Donald Trump only cares about winning reelection, not what the country looks like five years from now.
On the other hand, Biden does care about America's future and has the right economic plan that involves up-front spending in order to cement a bright future for all Americans economically.
And it must be said. The stock market does better under Democrats than Republicans.
"Since 1945, the S&P 500 has averaged an annual gain of 11.2% during years when Democrats controlled the White House, according to CFRA Research. That's well ahead of the 6.9% average gain under Republicans," Matt Egan wrote on CNN.
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Ryan is a student at the University of North Carolina at Chapel Hill majoring in Business Journalism. He has written in the past for SB Nation's Silver and Black Pride, USA Today Sports Media Group, North Carolina Business News Wire, the Daily Tar Heel, and has worked with Ice Cube's BIG3 basketball league.