Why Wall Street Supports Joe Biden despite Tax Increase and Economic Reforms

As an SEO expert, I can provide an insightful analysis on the reasons behind the unexpected support of Joe Biden from Wall Street, particularly given the anticipated tax increase and economic reforms.

Understanding the Democratic Stance on Tax Cuts for the Rich

During the Trump era, a significant talking point among Democrats was advocating for Tax Cuts for the Rich. One of their key arguments was aimed at addressing the gig workers under platforms like Lyft and Uber. Under Trump's regime, if a gig worker earned less than $20,000, they were not sent a 1099 form and consequently, paid no Federal Income Tax. This loophole vanished with Biden's administration, rendering it imperative for earners over $600 to receive a 1099 form.

Keynesian Economics and Its Long-term Benefits for Business

Joe Biden is a proponent of Keynesian economics—a strategy that seeks to stabilize economic cycles through counter-cyclical fiscal policy. Under his leadership, Keynesian economic policies are expected to yield significant positive outcomes for businesses. Historical evidence supports this stance, as Keynesian economic plans executed by Democrats have resulted in robust economic indicators such as:

Annualized GDP growth Annualized job growth Annualized growth in per capita disposable income Deficit reduction

For right-wing critics, this success story is often downplayed or omitted from their analyses. They typically avoid providing a comprehensive historical comparison between the performance of Republican and Democratic administrations. Nevertheless, the best economic performance numbers in these categories are predominantly associated with Democrats, while the worst are associated with Republicans. The Democratic Party's ability to hand off booming economies to Republicans, while Republicans often face recessions or struggling economies, further amplifies their success.

Divided Government and Its Advantages for Wall Street

Wall Street's support for a divided government is multifaceted. Firstly, a divided government ensures minimal change, especially the kind that could significantly impact their business models. Secondly, any reforms require compromise, leading to slower, more considerate, and generally beneficial changes. Ultimately, a divided government fosters a balanced political landscape where no single party's agenda can be imposed unilaterally, resulting in a more stable and predictable environment.

Long-term Stability vs. Short-term Volatility

Many people believe that the big winners in the market are those who can adapt quickly and capitalize on short-term opportunities. However, the stability of a Biden presidency is seen as a long-term growth strategy. Far from the occasional euphoria or lurid tweets, a stable governance model can drive sustained economic performance and corporate success. For instance, a 500-point drop in the market caused by a tweet is far more detrimental than the gradual implementation of sound, long-term economic policies.

In conclusion, while the media may highlight the potential for short-term turbulence and job losses in some regions, the overall stability and long-term prospects for economic growth under a Biden presidency are too significant to ignore. For Wall Street, this stability and predictability are what truly matter in the long run.