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.
“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.