Economic Implications of a Democrat Victory

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Economic Implications of a Democrat Victory

As economist Stephen Moore of the Heritage Foundation observes, “Democrats have been rewriting history this election season, celebrating the Obama record on the economy as if those were salad days for America.   In Washington parlance, that is called "misremembering."  The reality is that the Obama tax-and-regulate agenda led to the weakest economic recovery from a recession since the Great Depression.”

In mid-September, the Census Bureau released its economic report — the gold standard of measuring the finances of American families.  It showed that in President Donald Trump's first three years in office, real median family income for Americans rose by more than $6,400.  In Obama's EIGHT years in office, the increase in incomes was closer to $4,000.  Black Americans made more income gains in three years under Trump than in eight years under Obama.

Why is this important?  Because  Biden's agenda involves a return to the regulation binge in banking, finance, the environment, consumer affairs, and health care, which produced those dismal results.

Rumors are swirling that Sen. Elizabeth Warren, a leading Biden economic policy adviser, and confidant, could become Treasury secretary or regulatory czar in a Biden administration.

The radical Warren policy proposals that Biden has now adopted, include entirely carbon-free electricity (with a loss of up to 5 million blue-collar jobs) and the strictest financial regulations ever.  Under such rules, stocks and retirement portfolios could definitely take a beating.

For example, Warren and many Biden economists are advocating adding to the Fed's current dual mandate of promoting stable prices and maximum employment. Now they want a mandate that will use the Fed monetary policy to equalize incomes.  How?  Perhaps by printing money or forcing companies to pay a “super-minimum” wage.

Retirement savings of American mom-and-pop investors and financial traders of all shapes and sizes could also be at risk if the independent analyses of credit rating agencies are compromised by government mandates. The Biden Democrats want the feds to intervene in these bond ratings to promote social justice, environmentalism, and other goals that may be worthy, but that steer retirement and other investment funds away from the highest returns.

Biden also wants to double down on the Affordable Care Act, which has driven up health care costs and prohibited Americans from purchasing more affordable health plans...

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