"Commentators give a lot of reasons for Americans to vote for Democratic candidate Joe Biden this November. But very few talk about the economic side. If so, they just assume victory. Biden’s work will bring more benefits to the people, "wrote Edmund S. Phelps, an economist who won the Nobel Prize in Economics in 2006.
However, according to Phelps, the economy is not just money. It is a place where people work with the hope of developing themselves and reaping success.
The Nobel Prize-winning economist said it is important to evaluate the "Biden era" economy by looking back at the economy of US President Donald Trump . The first is the costly corporate tax cuts.
Phelps economist said the tax cuts did not bring in the investments from the rich or the growth as promised by Trump. Instead there was a fiscal deficit during the first three years of his presidency.
"Trump’s neglect of the fiscal deficit will set a precedent for unnecessary deficits in future administrations. Of course, deficits arising recently in response to pandemic are inevitable." Mr. Phelps commented.
According to Phelps, contrary to his populist rhetoric, President Trump does not seem to care about the extremely low income and living standards of the poorest class. Opponents also criticized him for doing nothing to eliminate racism, seּxism and discrimination against the LGBT + community.
The fact that Mr. Trump thinks climate change is a hoax puts the world economy in even more danger. According to the White House boss, the wildfires that devastated the western United States were only the result of "poor forest management".
The costly tax cuts of Mr. Trump caused a sharp increase in the budget deficit. Photo: Getty Images.
"The White House boss is undermining the government structure by attacking organizations from the Federal Bureau of Investigation (FBI) to the Centers for Disease Control and Prevention (CDC). The US is also losing allies. because of Mr Trump’s policies, "Mr. Phelps criticized.
"And the most unfortunate thing is the US president’s attempt to expel hundreds of thousands of immigrants who illegally came to the United States as a child," added the economist.
Phelps said the former US vice president understood the sizable disparity between the income of the middle class and the poor. Mr. Biden grew up in the steel-making region of Pennsylvania, so it is difficult to ignore the difficulty of low-paid workers.
"If Mr. Biden wins, we will have a president that favors subsidies that increase the incomes of the working poor," said the 2006 Nobel Prize-winning economist.
Mr. Biden is said to understand the plight of the working-class poor in America. Photo: Getty Images.
Mr. Biden is also paying attention to threats to climate change. To address these issues, government intervention and international cooperation are needed, such as the 2015 Paris Climate Agreement.
According to Phelps, no one doubts that Mr. Biden wants to play a central role in resuming the fight against climate change.
Finally, Americans have been living with the economic slump since the 1970s. The cause of the unrest is the disappointment of wage earners over income distribution.
