United States Awaits President-Elect Winner
Updated: Aug 18
This Presidential race is a lot closer than most of us expected, as the silent majority once again illustrates their deep roots. At this point, 3 days after Election Day, the United States still does not have a clear winner. The vote counting in Pennsylvania, North Carolina, Georgia, and Nevada continues today. The race is contingent on Donald Trump winning all 4 remaining states, however Joe Biden leads all but North Carolina. If Joe Biden wins any of the remaining states then he will have 270 electoral votes (or more) and he will be declared the winner.
Since the two Presidential candidates have such different political views, the markets will react differently depending on which person wins. If Joe Biden wins, investors can expect the cannabis, clean energy, and technology industries to go up. And if Donald Trump wins, it'll likely be manufacturing, oil/energy, and also technology to go up. The long-term differences will likely be minute and unnoticeable because neither candidate has shown any interest in making significant changes to the economy. And to be abundantly clear, this would be a grave mistake.
The economy as it stands requires significant changes for a wide variety of reasons, but for absolutely no reason should it stay the same. In technical terms, the market needs consistent government interventions to prevent market failures. In normal terms, governments need to give money to industries and businesses that are good for the people but don't make enough money to support themselves, yet. Capitalism itself doesn't work. If it did, then the United States economy wouldn't have needed a $2 trillion bailout during the Coronavirus pandemic. Under traditional capitalism, there would be no bailout because government interventions aren't needed in a free market.
Yet the US government spent $2 trillion in fiscal spending and over $4 trillion in monetary spending. That's $2 trillion from Congress given directly to the public or to businesses and $4 trillion into the stock and bond markets to prop things up. And since the $4 trillion, the stock market is at an all-time high. All three major stock indexes are at all-time highs. And after the $2.2 trillion paid in stimulus checks and unemployment benefits, most Americans are still struggling financially. This is not the sign of a functioning economy; the US economy was decimated even after the government stimulus.
The best thing that can happen at this point is that the country has a stable President that treats defeating the virus as the top priority for the country. The sooner we become a more stabilized nation, the better.