After the election of Joe Biden as the 46th President of the USA, relief can be felt in many places worldwide. International trading partners in particular are hoping for a return to reliability, partnership, objectivity and new confidence in transatlantic alliances. The election of Joe Biden will also have a positive impact on domestic politics, once the turbulence up to his inauguration has been resolved and the new government can devote all its energies to the tasks ahead.<\/p>\n
Following the global economic slump in March 2020 caused by the Covid-19 pandemic, companies listed on the S&P 500 market index have almost returned to pre-corona levels. After the initial shock, the US economy and consumers have quickly adjusted to the new situation. The slump of 9% of GDP in March was offset by an increase of 7.4% in the third quarter of 2020 (1)<\/sup>. Trillion-dollar tax cuts for companies and Corona aid packages under Trump until September 2020 led to an economic boom.<\/p>\n With a further $2 trillion economic stimulus package, the Biden government intends to continue this upward trend. This enormous sum represents just under 10% of the GDP estimated at approx. US$ 21 trillion for 2020 (2)<\/sup> and should therefore provide sufficient potential for a further upswing in the economy. Priority investments will be made in health care, infrastructure, education and environmental and climate protection, so that a large number of new jobs can be expected in these areas. Even if, as described by Morgan Stanley analysts (3)<\/sup>, this should be counter-financed by an increase in corporate tax, among other things, companies will benefit in the long term from rising consumer spending due to falling unemployment figures.<\/p>\n More moderate tones and bilateral solutions can also be expected in the trade disputes with the EU and China. The new Asia-Pacific Free Trade Agreement \u00abRCEP\u00bb should be reason enough to resolve existing disputes with trading partners or to rejoin the existing agreements in order to avoid isolating the USA.<\/p>\n If the domestic political turmoil eases after Joe Biden’s inauguration in January 2021, a return to objective and constructive work in Congress can be expected so as not to interrupt the \u00abv\u00bb-shaped recovery of the US economy thanks to the aid packages that have been put in place so far. The need to fight the Covid-19 pandemic to protect every individual and the nation is also likely to have permeated all social classes and political camps by now. For all parties have one thing in common: \u00abwe are the United States of America. And there’s nothing we can’t do, if we do it together (4)<\/sup>\u00ab.<\/p>\n (1)<\/sup> <\/i>https:\/\/www.handelsblatt.com\/politik\/international\/wirtschaftswachstum-us-wachstum-rekordzahlen-mit-schoenheitsfehler-\/26571720.html<\/a><\/p>\n (2)<\/sup><\/i> https:\/\/de.statista.com\/statistik\/daten\/studie\/14418\/umfrage\/bruttoinlandsprodukt-in-den-usa\/<\/a><\/p>\n (3)<\/sup> <\/i>https:\/\/www.morganstanley.com\/ideas\/2020-election-forecast-market-outlook<\/a><\/p>\n