What will America look like after the election on 3 November 2020?
The way forward is very different under Joe Biden and Donald Trump. The following is my understanding of the positions of the two candidates.
President Donald Trump promises he will continue to push for lower taxes, low regulations, increased job opportunities for all Americans, and more. He has already taken executive action to lower health care and drug costs and improve education through vouchers and charter schools. He will continue his policies on immigration and work for a resolution to the DACA issue. These are things he has spoken of or done for the last three and one-half years.
Vice President Joe Biden’s plans are very different. He intends to raise tax rates on corporations and on individuals making less than $400,000. He will increase regulations on businesses and sectors of industry as part of his Green Deal. His health care plan calls for a public option that will compete with private insurance plans. His list includes free college for those making less than $125,000, more funding to public schools, the end to private schools, and forgiveness for some college debt. He wants changes to immigration to allow more and a path for citizenship for DACA.
The effect on Americans will be very different after a vaccine for COVID becomes available, and all states fully reopen.
President Trump’s plans have proven their worth before COVID with low unemployment and growing family income. Once there is a vaccine, these policies should take over and return us to a pro-growth society.
Vice President Biden’s plans are untested and need more evaluation.
There is no way increasing taxes won’t affect those making less than $400,000 a year. Maybe not directly, but as an unintended consequence. Business taxes are a cost of doing business and paid using monies from customers. When you Increase taxes, the company increases prices, reduces its workforce, or/and delay expansion.
Complying with regulations is a business expense. Like taxes, they result in higher prices or fewer workers. The business must pay someone to evaluate the requirements and ensure compliance met.
Taxes and regulations affect everyone who uses a company’s products or services and anyone invested in the company through stocks or mutual funds (401k, IRA, etc.)
The Green Deal, or whatever he named it, calls for an end of fossil fuels. That is an end to cheap, reliable electricity and transportation. California has mandates requiring production of a percentage of electricity by solar or wind. This summer, the state had brownouts and blackouts because renewables weren’t up to the task. They are not ready for prime time as the primary energy source for homes, factories, hospitals, etc.
Vice President Biden has said he will push to replace gas-powered cars with electric vehicles. He will have millions of charging stations installed throughout the country. That sounds great and useful for short distance traveling. Let’s be generous and use the mileage a Tesla can travel today. The company claims it will do 325 miles on a full charge. Charging the vehicle to full takes up to twelve hours. I would need to stop four times to recharge and wait twelve hours each time before continuing to travel to see Texas relatives. No thanks.
Advertised free anything is never free. Someone has to pay for it. You may not write the check while the government does, but many provide the funds the government uses through taxes.
Joe Biden wants to allow more immigration and allow them access to the “American dream.” These workers will compete with out-of-work Americans. History shows immigrants willing to work for less, keeping wages low.
Wages will not go lower than $15.00, according to Biden’s manifesto. It will become the mandated minimum wage. Time would tell the impact on teens, etc. in breaking into the workforce (getting a job.)
This election provides a stark contrast between the two candidates’ visions for America. I am interested to learn which Americans choose.
Disclaimer. I prefaced my analysis with “my understanding.” I am open to hearing your understanding. So much so, I have a comment form for your use.
Keep safe during this trying time.