2020 Election: Searching for Economic Levers

Bloomberg Businessweek February 10, 2020 pp28-29 Economics “What Trump Can Do To Juice the Economy”. “With Democrats in control of the House, more fiscal stimulus is likely off the table.

Governments typically try and run up the economy in an election year by lowering taxes or interest rates-both of which are beyond the President’s control. Two other interesting ideas to “Juice the Economy” are infrastructure and writing off student debt. “Forgiving the [student] debts would boost the economy like a tax cut, Moody’s Investors Service says. A Roosevelt Institute study released in December explained how it could be done without Congress”. Writing off all or part of student debt has been touted by Bernie Sanders and Elizabeth Warren but “The idea has a populist flavor that might appeal to Trump”. With the exception of lower interest rates, spending and tax cuts would be even more deficit spending. Read the article for more detail.