On June 17, 2024, Polls show that the major issue the economy will face will be based on the results of the US Presidential Elections. Voters are in dilemma if President Joe Biden should be re-elected or should former President Donald Trump come back to the White House.
What are Voters’ Priorities?
As the 2024 US Presidential Election comes near the current level of the US economy emerges as a pivotal issue for the American voters. A survey was taken in May by the ABC News-Ipsos poll for the elections to be held in November. According to that, nearly 9 out of 10 Americans consider either the economy or inflation as their primary concern.
Various significant events occurred during the rule of Biden like Russia’s invasion of Ukraine and the Supreme Court’s reversal of Roe Vs. Wade. Despite all of them, voters look at the economy at the centre of their priorities before voting.
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Biden’s Economic Record
President Joe Biden has a strong economic record with low unemployment rate and speedy job creation. Unemployment rate in the USA has been less than 4% for an extended period. This has been the lowest rate since the 1960s. Over 15 million jobs have been added since Biden took hold of the oval office. The U.S. economy is projected to grow at twice the rate of its G7 peers. With the Dow Jones surpassing 40,000 for the first time, Wall Street has seen record high.
Inflation in USA
Although the inflation in the USA has cooled down, Americans continue to feel the pinch of high prices. The cost of daily essential items like food, gas and housing remains high. According to the Department of Agriculture, since the 1990s food costs reached their highest percentage of household income in 2022.
Biden’s Taxation Structure
To resolve all these issues, Biden has pushed for corporate price cuts. But he also acknowledges that the Federal Reserve plays a more important role to control inflation. His agenda includes proposals to offer tax credits for middle-class homebuyers. He also plans to offer incentives for the existing homeowners to sell starter homes below the median price.
His 2025 budget plan suggests increasing the corporate tax rate by 28%. He also plans to implement a 25% tax on unrealized income for the wealthiest Americans. With this, over the next decade, he aims to reduce the deficit by USD 3 trillion.
Trump’s Economic Proposals
Former President Donald Trump has not given any detail regarding the economic policies they are going to form if his part comes to power. But in his speeches, he has highlighted how to lower the inflation rates during his second term presidency. While some economic records set under Trump’s presidency have been surpassed by Biden, he continues to emphasize his achievements in controlling inflation.
Trump proposes to take measures against illegal immigration. He argues that this issue has surged under Biden’s presidency. However, such actions could cause labour shortages in the country.
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“Tariff Man” Trump
Trump, who is known as the “Tariff Man”, plans to impose a 10% tariff on all the imported goods. He focuses on increasing tariffs on Chinese products. This will gradually increase costs for U.S. importers and consumers.
Power over Fed
Republicans are exploring ways to expand their presidential influence over the Federal Reserve. By this they are trying to undermine its political independence. Trump, who appointed Jerome Powell as the chairman of Federal Reserves, often pressured the central bank for a lower interest rate. By this he wanted to boost borrowing in the country.
Trump also seeks to renew his tax plan. He plans to grow the economy through tax cuts and deregulation. Critics caution that during high inflation, such cuts could further increase prices. Trump also aims to eliminate the taxation of tips.
About Author
This article has been written by Mr. Radhesh Tarang Shah, who is a third-year management student at Institute of Management, Nirma University. He has a passion for writing articles and poems. He has experience as a financial analyst, author, news writer, marketer and social worker.
