2020 so far has been a heck of a year – a pandemic, a stock market crash followed by new all-time highs, economic lockdowns, etc. Still, one of the most important events for the world both in economic and political terms is the U.S. upcoming Presidential election.
With only a couple of months left until the election day, investors from all over the world have an eye on the political and economic agenda of the two candidates. Trump made history in his first mandate with some bold decisions – cutting the U.S. corporate tax rate, withdrawing the United States from the Paris climate change deal, negotiating with North Korea, building a wall, and so on.
What should we expect in the next four years, should Trump win a second term?
Trump’s Agenda Main Points in a Potential Second Term
To start with, Trump’s administration promises to focus on jobs. The plan is to create 10 million new jobs in the next 10 months and to create favorable conditions for one million new small businesses. Moreover, the plan is to cut taxes to boost the take-home pay and to keep jobs in America.
China is not forgotten. Investors thinking that the U.S.-China tensions will go away should think twice. The plan is to end the reliance on China almost completely. To continue with the job creation, Trump promises to bring back one million manufacturing jobs from China. Moreover, to give tax credits for companies that bring back jobs from China. Furthermore, no federal contracts will be allowed for companies that outsource their products or parts of their products to China. Some tensions there!
Perhaps the most ambitious plan is the one related to the pandemic. Trump’s focus is to develop a vaccine by the end of 2020, and so the economy returns to normal in 2021. Moreover, the administration plans to prepare for future pandemics and to refill stockpiles.
The agenda also covers points related to education, police, healthcare, and so on, but the points mentioned here so far are the ones the investors will focus on. One thing is certain – Trump did hold on most of what he said he is going to do before the first term.
After an initial shock, the stock market celebrated Trump’s victory in 2016. What will the reaction be in 2020?