A blue wave on Election Day may unleash $2.5 trillion in stimulus, Goldman Sachs says

[ItsjustMe]

https://finance.yahoo.com/news/coronavirus-stimulus-a-blue-wave-on-election-day-may-unleash-billions-goldman-sachs-says-121835364.html

Break out those shovels, picks and the debit cards if a blue wave of Democrats washes into D.C. come Election Day.

Goldman Sachs said Monday in a new note that a blue wave could lead to a whopping $2.5 trillion new stimulus plan. “This would likely include a stimulus package in Q1, followed by infrastructure and climate legislation. In this scenario, we would expect legislation expanding health and other benefits, financed by tax increases, to pass in Q3,” explained Goldman’s Jan Hatzius.

Hatzius further tossed his hat into the debate on whether presidential hopeful Joe Biden’s proposed tax hikes on corporations and those earning more than $400,000 a year would help or hurt the economy. “We recently analyzed the implications of a fiscal program similar to the Biden campaign proposals and found that the boost to growth from fiscal stimulus would outweigh the negative effects of tax increases, particularly in light of the fact that the increased tax revenue would go to fund new spending.” Hatzius added.

Some 15 days until the election, stimulus talks between the Trump administration and Congress remain precarious at best.

Over the weekend, House of Representative Speaker Nancy Pelosi set a 48-hour deadline to pass a stimulus plan. House Democrats have been pushing for a plan north of $2 trillion, which Senate Republicans have rallied against as being too high. Senate Majority Leader Mitch McConnell plans to bring a $500 billion stimulus bill to vote this week.

[SWBTATTReg]

1. Makes sense. And what's more important, is that the stimulus will impact people, families, etc.,

not businesses where so much of prior stimulus payments went before (trump and friends even spent $500 billion of their stimulus payments on things they wanted, so cronies and such all got payments whereas the rest of us suffered). So, $500 billion dollars in stimulus money has disappeared, with no accounting what-so-ever as to what happened to the funds, were they applied correctly as the law dictated etc. Full of corruption and I hope Mr. Biden goes after everyone of these crooks.