With the U.S. presidential election set to take place on November 5, 2024, this article provides a bird's eye view on the policy stances and past records of the two main candidates, former President Donald Trump and President Joe Biden, as well as a quick analysis on the potential macroeconomic implications of a second Trump vs. Biden term.
Key Points
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Fiscal Policy: The main difference is that Trump advocates for tax cuts to stimulate economic growth, while Biden supports raising taxes on corporations and the wealthy. Despite that, both Trump and Biden are expected to expand fiscal spending.
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Healthcare: Both seek to reduce prescription drug prices, but on health insurance, only Biden advocates for an expanded government role through strengthening Obamacare.
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Foreign Policy: Trump leans towards isolationism and trade protectionism, while Biden supports multilateral cooperation. Nonetheless, both candidates maintain a tough stance against China.
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Immigration: Trump supports crackdown on illegal immigration and strict border control. In contrast, Biden advocates for a more friendly approach and streamlining immigration processes.
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Climate & Energy Policy: Trump supports fossil fuels and has not said much about climate policy. Meanwhile, Biden is committed to the clean energy transition but has not completely halted the development of traditional energy sources.
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Macro Implications: At the end of this article, we summarize the above policy positions and assess their potential economic and market impact.
The upcoming U.S. presidential election, set to take place on November 5 this year, is shaping up to be a rematch between former President Donald Trump and President Joe Biden.
The two candidates hold distinct policy positions on key issues shaping the country’s future. To provide a deeper understanding of the potential policy and market impact, we will be launching a series of articles focusing on the election and its economic implications. As the first of the series, this article outlines the two candidates’ policy stances in five key areas: fiscal policy, healthcare, foreign policy, immigration, and climate and energy.
For more data-driven insights and easy tracking of the latest developments, we’ve also launched the 2024 US Presidential Election section, featuring the latest polls in charts and interactive maps.
I. Fiscal Policy: Trump for Tax Cuts and Biden for Tax Increases, Both Expected to Expand Spending
On fiscal policy, the sharpest distinction between Trump and Biden lies in tax policy.
A big supporter of tax cuts, Trump signed the Tax Cuts and Jobs Act (TCJA) in December 2017, which reduced the top marginal rate from 39.6% to 37% for individual income tax rates, lowered the corporate tax rate to 21%, and eliminated the 20% corporate alternative minimum tax (CAMT).
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