President Joe Biden Economic planning is much better That’s higher than Donald Trump’s approval rating, according to a new survey from Moody’s Analytics.
If Trump wins and goes ahead with his plans, including extending tax cuts for the wealthy and imposing tariffs on imports, Moody’s projects the US could fall into recession in 2025. In the long term, the economic plans Trump has announced would stifle economic growth and drive up prices.
“Republican victory scenario“Republicans take control of Congress and the White House, enabling other aspects of President Trump’s agenda, including mass deportations of immigrants,” Moody’s said in the report. In this scenario, Moody’s predicts not only a long-term economic slowdown, but also a sharp rise in inflation and interest rates.
On the other hand, if Biden wins, the economy is expected to continue growing steadily while inflation stays below 2%.
Trump’s plan for mass deportations would further strain an already tight labor market, making it harder for companies to find workers. That may be good for some workers who remain in certain jobs because companies will have to compete for labor, but for everyone else it will mean higher inflation and product shortages.
A shortage of migrant workers could hit agricultural production especially hard. Efforts to limit migrant labor on Florida farms are already underway. The emergence of “ghost towns” Farmers aren’t getting the support they need, and key industries are in disarray. If Trump rolls out these policies nationwide and follows through on his anti-immigrant threats, Americans may find the abundance of food produced at home to be a blessing in disguise. Spending more than half of your income on food This was a larger decline than any other country.
“Biden’s policies are good for the economy,” said Mark Zandi, chief economist at Moody’s Analytics. USA Today“They lead to more growth and lower inflation.”
Moody’s also worries that if Trump wins, the Federal Reserve may be forced to raise interest rates further to combat rising labor costs and resurgent inflation, raising the chances that he could trigger a double-dip recession that would keep the economy sluggish for years.
Moody’s also predicts that Trump’s policies would lead to an overall decline in employment — by the end of Trump’s second term, Moody’s projects there would be more than 3 million fewer jobs than if Biden had been re-elected. Extending the tax cuts would add $5.2 trillion to the national debt.
If Biden wins the White House, Moody’s projects that inflation will continue to fall, returning to the Fed’s 2% target by the summer of 2025. Moreover, growth will accelerate, employment will continue to increase, and the budget deficit will decrease.
That’s a big contrast.
As USA Today points out, Trump’s policies have even scared the liberal economists at the CATO Institute, who predict that his policies will do a lot of damage to the U.S. economy.
Thanks to Biden, Americans will benefit from:
For Trump, the benefits are:
This is just another area where the choice seems obvious — and that’s before we consider other impacts, like the damage it would do to rip apart immigrant families and destroy environmental progress.
Related article: Trump promises more tax cuts for the wealthy; Democrats have another plan
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