Former Vice President Joe Biden’s economic plan would create higher paying jobs and add jobs faster than President Donald Trump’s plan would, the Intelligencer reports.
According to an economic forecast conducted by Moody’s Analytics, Biden’s plan would lead to 18.6 million new jobs during his first term. The average American’s income after taxes would increase by about $4,800. Under Trump’s plan, there would be 11.2 million new jobs by 2025 and little income gain for the average household, according to the economic-research firm.
Biden’s plan would result in a faster recovery because it would increase short-term deficit spending, according to the report.
The economists also predict that Biden’s plans would yield higher long-term growth than Trump’s.
They note that Biden’s strategy of spending more money on infrastructure would increase growth more than Trump’s plan. Biden’s policies on paid family leave, elder care, and early childhood education would also help boost both the productivity and size of the workforce. They predict the opposite would happen under Trump’s restrictive immigration policies.
The study notes that under Biden’s plan the “benefits to long-term growth will more than offset the economic costs from the higher marginal corporate and personal tax rates under his plan that reduce the incentives to save, invest, and work, the disincentives to work and save from the larger social benefits, and the higher federal minimum wage that would be phased in over a long enough period to mitigate much of its negative effects on jobs.”
The reason why some people are opposed to Biden’s plan is likely because for wealthy people the gains would be taxed away, according to the outlet.
“Stock prices also rise, but the gains are limited,” the study notes. “This is because of high current market valuations that limit prospects for near-term gains and the pedestrian growth in corporate profits under Biden’s policies, as more of the benefits from the stronger economy under his policies go to workers.”
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