Oxford, Moody’s: Biden’s Economic Plan Would Create More Jobs, Growth Versus Trump’s

As the presidential election approaches, investors are likely sharpening their focus on the potential economic outlook under either President Trump or Democratic presidential nominee Joe Biden.

President Trump hasn’t actually spelled out a specific economic plan, and the Republican party chose not to write a platform at its nominating convention. Likely, Trump would advocate for a payroll tax cut, but that’s unlikely to pass Congress due to its effect on Social Security funding.

Biden’s plan is much bigger and more detailed, and therefore, able to be analyzed. To that end, research group Oxford Economics and debt-rating agency Moody’s (NYSE:MCO) recently performed analyses of Biden’s plan, and both organizations believe it would create significantly more jobs and economic growth than the current trajectory — even in a more stripped-down form more likely to pass the Senate.

A young man in a suit seen from behind looking at two identical white doors.

Oxford Economics and Moody’s believe Biden’s economic plan would boost growth. Image source: Getty Images.

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Biden’s education plan would help yield a stronger economy versus Trump’s

Joe Biden’s plans for education would dent the U.S. budget — especially compared with President Donald Trump’s — but the spending would be a key factor in boosting the economy even more, according to a new analysis from Moody’s Analytics.

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“Biden and Trump are night and day on their commitment to supporting education,” Mark Zandi, Moody’s chief economist, told Yahoo Finance. “Biden is all in on it and Trump is AWOL.”

Zandi and Bernard Yaros, another Moody’s economist, quantified the economic impact of four scenarios where Trump became president, with and without a Republican-controlled Congress, as well as a Biden administration, with and without a Democrat-controlled Congress. 

A Democratic sweep, followed by government spending just for Biden’s education plans alone, would cause a budget deficit of $636.3 billion between 2021 and 2024, the analysts calculated. A Trump administration would save the government $52.2 billion between the same period.

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