Economics
Biden Economic Bounce Is Possible, With Hefty Deficit Price Tag
- Democrat’s spending plans expected to drive growth rate higher
- In virus slump, his tax hikes may not be immediate priority
Joe Biden speaks to the media before boarding his plane in Hagerstown, Maryland.
Photographer: Brendan Smialowski/AFP/Getty ImagesThis article is for subscribers only.
Financial markets are warming to the idea that the U.S. economy could get a Biden bounce -- but it hinges on a new government being able and willing to run big budget deficits.
Democratic challenger Joe Biden is promising more than $3 trillion in extra spending over a four-year term if he beats President Donald Trump next month. On top of that, pandemic relief measures worth another couple of trillion -- which got stalled in the current legislature for months -- are likely to get pushed through, especially if Democrats win Congress as well as the White House.