Reshab AgarwalThe US elections are on, and there are many changes that it might bring. With a new president, there might be huge effects on various industries, both negatively and positively. It’s no secret that both Donald Trump and Joe Biden have their own bends towards various sectors. These sectors are the ones they might focus on the most. In contrast, some sectors might not get many benefits from their presidency. So, let’s take a look at various industries/sectors and how they might react if Joe Biden is elected vs Donald trump.
Education Sector
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Starting with if Trump wins the election, we might soon see schools and colleges reopen soon. He also plans to provide millions of COVID testing kits to states, in order to make sure the affected gets diagnosed and can be quarantined. Trump is also totally in for asking parents to spend the federal money allotted to them and get them enrolled in private schools if the public ones do not open.
Now, if Biden gets elected, we might see schools getting more federal aid for COVID related costs and delayed opening. He also plans to make higher education completely free for those whose yearly earning is less than $125,000. Biden also plans to provide more aid to black colleges bringing the estimated cost to $850 billion.
Healthcare Sector
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Healthcare is an essential aspect of any country. As of now, we know that Donald Trump plans to bring a plan that will provide free insurance for everybody. As per his promises, if he gets elected, there is also a chance in the reduction of prices in medication and care. Trump is making or looking forward to making his own changes in the Healthcare department. But it seems that Trump doesn’t have a very crystal clear idea on a new health plan, and presently all he is speaking about is the insurance. So, the healthcare department might not see much benefit if Trump wins.
On the other hand, Biden wants to expand Obama’s take on healthcare. He plans on bringing something like medicare than is available for the masses and can be used by working-age individuals. Estimates suggest that the entire cost of his plan would be around $750 bn in the next 10 years. His idea is completely against trump who wants to replace private insurance companies while Biden wants to compete.
Trade plans
Image Source: The economic times
People say that Trump might not be a great president, but he definitely is a great businessman. Trump has made many great business deals with many countries in the past and has brought in a lot of money too. By providing lucrative business deals and offers to reduce import taxes on trade, Trump has done good business. But at present Trump has deteriorated US-China relations and is not in very good terms with Chinese companies like TikTok and Huwaei. He even went to lengths to say that he is not even interested in talking to China.
While Trump is more into foreign trade, Biden wants to infuse money into US companies. He believes that any form of spending must first happen in domestic firms and companies. Biden plans to invest around $400 billion into domestic firms and companies in tenure of about 4 years. He also wants to add $300 billion for research and development in US tech firms. Biden will also work with China to improve US-china trade-relations and bring in more business. This might also mean that the trade ban on Huwaei with US companies might be removed as a part of the negotiations.
Cannabis sector
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Indeed a very controversial topic, not something we talk about much. But if you take a look in the past years many states have reduced restrictions on the use of Cannabis. There are still many laws for the same, but that might change if Biden gets elected. Reports from sources suggest that cannabis might get legalized under the federal laws in the future. Thus will also enable Advisors to work with those who have their hands and makes profits through the cannabis industry.
While I don’t think anything is going to change in the department if Trump stays president. He is completely against the use of marijuana and any form of easing laws for the same. Though the law for legalization of marijuana has been handed down to the states, I don’t see the industry getting benefited in anyways if Trump gets elected.
Renewable Energy Sector
Image Source: Forbes
The use of energy and focus on reducing the carbon footprint is something every country is focusing on. And with Biden, one of the industries that are going to be benefitted the most is the Renewable energy sector. Reports suggest that clean energy stocks might do very well if Biden wins. Biden might even invest federal funds to help build better infrastructure to generate Renewable energy. Biden wants to reduce the carbon footprint as much as possible as per his proposals.
On the contrary, if Trump gets elected, we might not only see Renewable energy not getting any benefits, but we might even see it degrade. This is because Trump is all for the use of fossil fuels. He plans to fast track many fossil fuel-related projects and has spent millions to drill for gas and oil. It is also being said that if Trump doesn’t win the election, many projects will slow down and might even stop.
Technology sector
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Both Trump and Biden are in favour of Technolgy and want to invest and improve the sector. But their outlooks on other departments makes a lot of difference on how the industry might benefit if Joe Biden is elected vs Donald trump. Well because Biden is more in favour of the restrictions due to the pandemic it might eventually give a boost to tech companies. This is because people will be more dependent on their platforms for daily use.
An easy example of this is the use of Google Meet or Zoom for video calls on online classes and meetings. Or the boost of Edtech platforms because colleges, schools and tuitions are closed. All in all, if Biden gets elected, we might see quite a boost in the tech industry in contrast to if Trump wins. There might also be a massive increase in stock prices if Trump doesn’t get reelected.
Taxes and the US Economy
Image Source: The wall street Journal
Finally one of the most sensitive topics that are taxes and the economy. Trump says that the US economy that has trailed behind due to the pandemic will be back on track bt the end of 2020. He also said that COVID vaccines will soon be out soon and solve all the problems that the country has been facing. Trump might also be able to introduce his idea of reducing taxes using the payroll tax cut if he gets elected.
On the other hand, Joe Biden has very different plans. He wants to increase the corporate income tax rate to 28% which is higher than now. And at the same time also increase taxes for those having income more than $400,000 a year. The estimated total tax generated by the increase will be at least $4 trillion in the next ten years. He plans to invest the money in the sectors that we have discusses above like the education, healthcare, renewable energy and more.
Who do you think will win the US elections, Donald Trump or Joe Biden? And how the US economy will be affected if Joe Biden is elected vs Donald Trump? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.
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