And they are not alone in finding a Biden win translating into brisker growth: Economists at Goldman Sachs and Oxford Economics conclude that even a version of Biden’s program that would have to shrink to pass the Senate would mean a faster rally back to prepandemic conditions.
All three see the higher government spending a Biden administration would approve — for emergency relief programs, infrastructure, and an expanded social safety net — giving the economy a potent injection of stimulus.
The economic outlook is strongest if Democrats sweep Washington, the Moody’s team finds.
“In this scenario, the economy is expected to create 18.6 million jobs during Biden’s term as president, and the economy returns to full employment, with unemployment of just over 4%, by the second half of 2022,” they write.
Real after-tax income for the average American household would increase by $4,800 by the end of Biden’s first term