The Forbes magazine editor-in-chief, Steve Forbes assumes that Joe Biden’s presidency might come as an ‘economic disaster’ for America. Forbes, a two time GOP presidential candidate believes that Biden’s policy would mark the return of ‘stagflation’ to America.
Biden’s Policy To “Trash” The US Economy.
According to Steve, Biden’s policy of raising taxes would ‘trash’ the US economy in this COVID19 pandemic phase. Biden’s policy includes raising taxes on individuals who earn more than $400,000 in a year. This would result in a collection of approximately $3.2 trillion over the following 10 years.
According to Forbes, the economy is still recovering from the lockdowns and making good progress, but everything is still recuperating. The taxes would ‘dry up investment’ at a time when Chinese companies are becoming competitive at a higher level, and hence all of this would hurt the venture capital.
Bringing Back The ObamaCare Taxes.
Joe is likely to bring the ObamaCare taxes that the Republics had got rid off. Steve believes that the tax raise is going to hit the people as the economy is a lousy situation already, where people are unable to get raises and wages, their jobs, and higher pays.
Return Of Stagflation?
With Biden’s policy of higher taxation and regulation, the US might experience stagflation after almost 40 years. Stagflation, in the US, is used to describe the recession that lasted from November 1973 to March 1975. The effect of this period continued through the rest of the 1970s and early 80s.
Stagflation, a combination of inflation and is a situation where the country’s rate of inflation and unemployment remain high, whereas the rate of economic growth slows down.