How the “Blue Wave” can boost the US economy
In recent weeks, the United States has lived through moments of great political instability, especially after the January 6 attacks. After these turmoils, Joe Biden was ratified as the newest President elected by the US Senate, taking office today, January 20th. However, some doubts still hang over how his government will be, due to the differences between him and his predecessor. However, perspectives and projections point to positive scenarios for the coming years, largely due to the so-called "Blue Wave".
Prospects for greater political stability
At first, the importance of the Senate and the House of Representatives for the US President is reiterated, since the projects presented depend on the approval of these houses. That said, the "Blue Wave" refers to a victory by a Democratic majority in the House of Representatives, along with the Democrats' 50% possession of the Senate seats (which in the event of a tie, the decision will be up to Vice President Kamala Harris ). In this way, the projects of the Biden government will be able to be incorporated in a less conflicting manner, an encouragement to the local and global market, as it guarantees greater stability in the country and greater stimuli for world economic policy.
New economic proposals and forecasts for greater stability
Projections point to a government that approves greater policies to stimulate the economy, such as financial support for families and a trend towards higher interest rates to benefit small businesses in the country. Along with this, its economic plan is also focused on investments in infrastructure, renewable energy, education and retraining of the workforce. Projects like these are considered to be great for potential economic growth, as economist Alejandro Ortiz points out.
It is noteworthy that US economic growth and political stability support the entire global financial system and can positively influence several countries, such as Brazil, as its stock market is directly impacted by US companies.
In addition to projections, the following day Biden's ratification was seen as a result of the rise of points on the Stock Exchange in two of the most important indices in the USA, the Dow Jones and S&P 500, due to the greater stability created by the results of the "Blue Wave" together the proposed measures to stimulate the US market. Finally, Banco Goldman Sachs revised and placed new projections for the coming years after the "Blue Wave" scenario, pointing to a growth of 6.4% of the American GDP at the end of 2021. With regard to unemployment, it is projected a decline over the years from 4.8% in 2021 to 3.6% in 2024.
The importance of an international consultancy in this optimistic scenario
Based on these data and a positive scenario for the coming years, the US becomes a thriving destination for investments and an International Consultancy can help and guide through research and studies how and where to precisely invest in this vast country.
By Enzo Toledo on 01/18/2021
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