How could Biden’s policies affect the US economy?

Biden’s masterplan

Here’s a run-through of some of Joe’s policies.

#1 Tax

Biden doesn’t intend to raise individual taxes on anyone earning less than $400,000 a year, which is more than 90% of the taxpaying public. He will, though, reverse the 2017 tax cuts for those earning more and increase the Corporate Tax rate from 21% to 28%.

#2 Government spending

Biden has promised a $2 trillion spending package to build out “a modern, sustainable infrastructure and an equitable clean energy future.” Clean energy and infrastructure companies will be happy to hear this news and their stocks should remain quite buoyant as a result.

#3 Jobs

Biden has vowed to do “whatever it takes” to extend small business loans and increase direct payments to families. He’s promised an additional $200 in Social Security payments per month, (reversing Trump’s cuts there). He’ll also raise the federal minimum wage to $15 an hour.

#4 Foreign Trade

This is one thing Joe didn’t really touch on too much while campaigning. It’s reasonable to suggest that Biden will be more open to cooperation with traditional Western allies in Europe and North America than his predecessor was.

Other factors to watch out for

What we just experienced was one of the most heated and contentious US Presidential races in living memory and it should now be all over. However, President Trump has yet to concede the race and there is still speculation over electoral fraud.

What’s going on this week?

We recommend keeping an eye on the following events.

Monday 16th November

● Japan will announce its preliminary annual GDP growth for Q3 (JPY)

Tuesday 17th November

● The US is due to update us on its MoM Retail Sales (USD)

Wednesday 18th November

● Happy Inflation Rate day! We’ll be getting YoY inflation updates from the UK (GBP), Europe (EUR) and Canada (CAD)

Thursday 19th November

● The RBA will fill us in on the monthly employment situation in Australia (AUD)

Friday 20th November

● Japan’s a couple of days late to the party, but they’ll announce their YoY Inflation Rate for October (JPY)

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