Joe Biden's plan would create 7 million more jobs than Trump, according to one economic forecast
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The study, conducted by Mark Zandi and Bernard Yaros, evaluated the economy's trajectory under four different scenarios. But it found that a Democratic sweep where Biden is elected and Democrats recapture the Senate would lead to a significant increase in federal spending. They assume it would be largely "deficit-financed," meaning the government racks up a bigger federal debt.
The spending, though, wouldn't be a drag on overall growth. Instead, 18.6 million jobs would be created during Biden's first term, and lift the average American's household after-tax income by $4,800. That's 7 million more jobs compared to a scenario where Trump is reelected and Republicans hold onto the Senate. Household incomes largely stay the same should the GOP control both the legislative and executive branches.The unemployment rate would drop below 4% in late 2022 in a Biden presidency. Under Trump, that would occur in the first half of 2024 — a 1.5 year difference.
The analysis sought to predict the economy's trajectory under several different scenarios, including a period of divided government. Details around Trump'sHe added that Biden's endorsement of policies such as paid family leave and stronger access to childcare also shores up the number of jobs created in the analysis.
Biden has unveiled an ambitious suite of spending proposals that would generate $4 trillion in new revenue over 10 years. He recently incorporated an overhaul of the child tax credit into his economic platform, which would allow parents with children under 17 years old to receive up to $300 in monthly federal payments next year.
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