Monday, November 9, 2020

Economics: US Election 2020 - Best Of Both Worlds


(Drivebycuriosity) - It seems that the US election created the best of both worlds. The US will get a left-leaning (called liberal) President who has to deal with a more conservative (Republican) Senate. They will slow down each other, creating a very healthy balance.

The new President has the reputation for hiking taxes, regulating the economy more intense and shutting down cheap US oil and gas production (fracking). The senate will slow him down or stop him doing that. So we can expect moderate taxes and regulation for the coming 4 years which should give the economy a boost. The new President might not get the power to end US fracking which is keeping oil & gas prices low since 2016 (driveby). There is also hope that the new President will unwind Trump´s irrational trade war against China, which has damaged the US economy already (my post ).

History shows, the weaker the government the better the economy. Less government influence means less bureaucracy, leading to lower costs and less friction. Private enterprise are gaining more scope which animates more private investments. Money is used more efficiently leading to higher economic growth. Enjoy! 


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