Did you want to wake up today and find out who is going to be the new US President? We still don't have that answer. The reason for this - apart from the neck-and-neck race - is the federal election system in the USA: each state elects its own electoral candidates. These elect the president. Parallel to the election of the president, about one third of the members of the Senate and all members of the House of Representatives were also elected. Insofar, one thing is certain: the majority ratios in Congress remain unchanged.
In four states not all the votes have been counted yet: Pennsylvania, North Carolina, Georgia and Nevada. Joe Biden only needs the votes of the electors of one of these states to become the 46th President of the USA. It remains to be seen how long legal disputes over the counting of the votes will delay the result even further.
On Thursday morning, when Biden is in the lead, his economic policy agenda is to be examined in a more differentiated manner in the interest of German companies with business operations in the USA. We are already well informed about Donald Trump's business-friendly policy. The stock markets are not reacting negatively to a possible Biden victory, as it had always been said. It is well known that Biden wants to raise taxes for the wealthy and companies. We are also familiar with the concept that the Democrats follow a more liberal approach. But, as the saying goes, it should not be 'tax and save', but 'tax and spend'. This is consistent with the analysis in our article from October, 19 on the IMF's recommendation for further high government expenditures to overcome the Covid 19 crisis.
Expenditure should primarily be directed to health care, education, infrastructure, and renewable energies. A kind of new 'New Deal' is being proclaimed in view of the major challenges posed by the health, climate, and racism crises. Biden's expert team is little known here in Germany. With Trump, his expert team is well known for its existing positions in the government: Heather Boushey, one of the leading experts on the topic of unequal income distribution, and Stephanie Kelton, a specialist in the management of government expenditures, to name just these two.