Economists with Goldman Sachs, the billion-dollar multinational investment bank, are cheering a “blue wave” in the November 3 presidential, Senate, and House elections, citing a return to “easier” fiscal policy with fewer trade fights.
In a note to clients this week, Goldman Sachs economists wrote, “a blue wave”would be good for the American economy because:
it would sharply raise the probability of a fiscal stimulus package of at least $2 trillion shortly after the presidential inauguration on January 20, followed by longer-term spending increases on infrastructure, climate, health care and education that would at least match the likely longer-term tax increases on corporations and upper-income earners.
A blue wave, Goldman Sachs wrote, “would have mixed implications for broad U.S. equity indices” but said Democrat presidential candidate Joe Biden’s insistence on a seven percent increase in the corporate income tax rate would have little-to-no impact on “firms that pay most of their taxes outside the United States.”
The Goldman Sachs economists wrote that a Biden corporatist-centric presidency with a Democrat-controlled Senate and House would “likely result in substantially easier U.S. fiscal policy, a reduced risk of renewed trade escalation, and a firmer global growth outlook” — a sort of return to an economic status quo for big banks and multinational corporations.
“It’s hard to disagree with Goldman Sachs’ contention that Biden will be an even bigger spender than Trump, that Congress Dems will eagerly go along, that as a result, U.S. growth will pick up, and more net imports will be pulled in,” Alan Tonelson, who writes the RealityChek blog, told Breitbart News.
“The import flow, moreover, is unlikely to become a major Biden concern until at the earliest the approach of the 2022 midterms, when Rust Belt Democrats and their voters will start complaining again,” Tonelson said. “The growth will all be fueled by borrowing and spending, but it will be growth nonetheless.”
Joe Biden Adviser: Biden Will Implement ‘New Approach to Globalization’https://t.co/8CeR5ND4fL
— John Binder 👽 (@JxhnBinder) October 1, 2020
Biden’s campaign has raked in nearly $280,000 from Goldman Sachs employees. Trump has taken less than $9,000 from Goldman Sachs employees this election cycle.
JPMorgan Chase employees have given three times as much campaign cash to Biden as Trump. Biden has taken nearly $380,000. At Morgan Stanley, Biden has taken more than twice as much as Trump, nearly $258,000 from the bank’s employees compared to Trump’s $96,010.
In recent months, Wall Street and nearly all the nation’s biggest banks have lined up support for Biden and his running mate, Sen. Kamala Harris (D-CA), against President Trump’s economic nationalist agenda.
John Binder is a reporter for Breitbart News. Follow him on Twitter at @JxhnBinder.