Goldman Sachs has made a surprising statement about which presidential candidate would boost the economy the most if he wins in November.
According to the investment bank, it would be better for the US economy if Kamala Harris were to defeat Donald Trump.
A Democratic victory would create about 30,000 more jobs per month than a Republican victory, a new analysis from the bank shows.
The Wall Street giant is confident that Harris’ plans to help America’s middle class and small businesses will increase consumer spending, which will benefit the economy as a whole.
According to the report, that boost would outweigh the negative consequences of possible higher taxes on the wealthy and big business.
Goldman Sachs believes a Harris victory in November would be best for the US economy
“A Harris presidency could be beneficial for small and medium-sized businesses as the focus seems to be on fiscal policies that provide support through tax breaks and subsidies for start-ups,” Javier Molina, senior market analyst at eToro, told DailyMail.com.
Harris is also expected to lead to more job creation than Trump, especially if it is coupled with fiscal stimulus and expanded tax credits. This could lead to moderate job growth, boosting sectors like renewable energy and infrastructure,” Molina explained.
In contrast, if Donald Trump wins, inflation will rise and economic output will take a hit in 2025, a report from Goldman Sachs found.
The blow would be the result of the much stricter immigration policies that Trump advocates and the higher import tariffs that the former president has threatened.
“We estimate that if Trump wins overwhelmingly or with a divided government, the impact on growth from tariffs and tighter immigration policies will outweigh the positive fiscal boost,” the bank’s report said.
Higher tariffs on goods such as electric cars from China, Mexico and the EU would push up core inflation, the banks said.
Economists see immigration as an engine of growth because immigrants tend to be younger and therefore boost the labor market and spending.
Goldman argues that cutting immigration in the way Trump wants to do would turn off the country’s growth engines, which would be detrimental to the country’s profitability.
The report comes as the battle between Vice President Harris and the former president intensifies, with less than two months to go before the country goes to the polls.
Goldman Sachs CEO David Solomon has called on candidates to support small businesses
According to a recent Reuters/IPSOS poll, 43 percent of voters have more confidence in Trump when it comes to the economy, compared to 40 percent who have more confidence in Harris.
The economy is a key battleground for candidates as voters come out of years of inflation, higher mortgage rates and this summer’s volatile stock market.
Goldman Sachs, led by CEO David Solomon, has called on both candidates to put small businesses at the center of their policy plans.
The bank has placed ads in Times Square in New York City ahead of the Sept. 10 debate that read, “Small businesses employ nearly half of America’s workers. Let’s make SMALL BUSINESSES part of the debate.”
Meanwhile, a seasoned financial guru has revealed what financial steps need to be taken if Kamala Harris wins the 2024 presidential election.
Sean Bryant warned that there will be a “guaranteed impact” on the US stock market regardless of who wins the White House in November – Trump or Kamala Harris.
