How does the presidential election affect our economy?
When the presidential election draws near, the nation collectively holds its breath. It is as if a lot of things go into slow motion while the world looks at the nation to see who it will select as its new leader. It might seem a little dramatic, but whoever is voted into the office of the president of the United States has a major impact on the nation’s international relationships and our economy.
Investors pay close attention to the election because the outcome can affect upcoming investment decisions. With the most recent election, many investors felt relieved with Biden winning the presidency while Republicans appear set to hold on to the Senate and Democrats still hold the House. This is because we essentially have a locked system that makes it difficult for the new president to pass new tax laws, which means it could be safer for investors to make new investments knowing they will not be subject to new, higher taxes.
Presidents have always impacted the economy
The economy can be measured a few different ways. Often, we measure the health of the economy by looking at the health of the stock market. While Congress is responsible for setting tax rates and passing bills, it is the president who appoints officials, such as the head of the Department of Commerce, the head of the Federal Reserve, and trade representatives.
Besides their official appointments, the president’s other decisions have an impact on the economy, such as foreign policy, immigration policy and military action. A look at this chart by Investopedia of the S&P 500 Price Change by Presidential Term can show you how the economy has behaved historically during a president’s terms.
Talk to a ProVise CFP® professional about managing your finances
The 2020 election is over, and the results are in. More investing could lead to a healthier economy and more jobs, but you still need to be thinking about your personal finances and personal opportunities to invest and save. Managing finances can be difficult and time consuming when you already have a lot on your plate, but our financial professionals at ProVise can help.
At ProVise Management Group, our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.
Are you ready to talk to a professional about managing your personal finances? Contact ProVise today to schedule a complimentary consultation.