Major Wall Street Analytics Firm Predicts Across-the-Board, Better Economic Recovery If Biden, Dems Sweep Elections
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A major Wall Street analytics firm released its financial forecast for the country over the next decade under four different scenarios — and it assessed the prospect of a Joe Biden win and full Democratic control of Congress as the best for the economic recovery.
According to a new 10-year forecast from Moody’s Analytics, the nation would enjoy faster and stronger GDP growth, more employment gains, more labor participation and income growth, and greater corporate profits if a blue wave sweeps the 2020 election.
“The economic outlook is strongest under the scenario in which Biden and the Democrats sweep Congress and fully adopt their economic agenda,” Moody’s wrote.”The economy is expected to create 18.6 million jobs during Biden’s term as president, and the economy returns to full employment, with unemployment of just over 4%, by the second half of 2022.”
Their rosier forecast comes despite Biden’s promise to raise taxes on the wealthy and corporations and boost the nation’s minimum wage to $15 an hour.
By contrast, Moody’s forecasts that the worst scenario for the U.S. economy would be Donald Trump’s re-election with Republicans controlling both chambers of Congress. It predicts that more than seven million fewer jobs would be created in Trump’s second term as president under those conditions, and full employment wouldn’t return until 18 months later than the Biden-Democratic sweep scenario, or roughly the first half of 2024.
Mother Jones created a chart to illustrate two of the different 2020 scenarios, contrasting the predicted performance of the economy across a number of measures in a Democratic sweep versus a Republican sweep. The difference, as you can see here, was stark.
Moody’s forecast for an across-the-board better economic recovery under a President Biden and Democratic Congress flies in the face of Trump’s repeated, dire claims that the financial markets would crash and another depression would ensue if Biden were to win.
