Why the 2020 Presidential Election in the United States are Pivotal to Global Businesses

Why the 2020 Presidential Election can be the Tipping Point for the American Economy

As the 2020 Presidential Election process in the United States is underway, it is time for us to examine the impact and the implications of this year’s contest on domestic and global businesses.

Not only would the outcome of the election determine the direction of the Foreign and Economic policy of the United States for the next four years, it would also determine the future of globalisation and the relations that the US would have with leading economic partners such as China.

Indeed, if Trump wins again, it is almost certain that the America First Agenda would be reinforced and at the same time, if Bernie Sanders or Elizabeth Warren wins, the basic structure of the economy of the US that is now run on capitalist and free market principles would be altered as they are running on a socialist and leftist centrist platforms.

This has implications for global businesses as either way they would stand to lose in such an election and this is the reason why the Democratic hopeful, Michael Bloomberg, is gaining traction since many people want the Status Quo to continue.

Will the Status Quo Continue and the Problems with the Status Quo

Talking about the Status Quo, it is also the case that there are questions about the present manner in which the gains from economic growth are accruing to a few at the top whereas the many at the Middle and the Bottom are losing out.

This is the reason why Sanders is gaining in popularity each passing day and why Warren too is giving nightmares to business leaders.

Both these candidates represent an ideological pole that is diametrically opposite to the capitalist run economy of the United States.

Therefore, if either wins, there would be the possibility of Higher Taxes on the Rich and an End to the Socialism for the Rich and Capitalism for the Poor policies of the last few years.

Indeed, if not anything, the candidacies of Sanders and Warren represent a shift to the Left that the United States has never seen before.

This is the reason why many business leaders are throwing their weight around Trump to be re-elected, so that there is no fundamental shift in the way the economy works.

Of course, there are many who believe that the body polity of the United States has enough checks and balances that would ensure continuity.

Climate Change, Globalisation and the Election’s Impact on Global Businesses

Having said that, no matter who wins, it is almost clear that more globalisation and lesser trade frictions are a thing of the past.

Indeed, almost all indications are that the United States would turn more inward than over the last four years.

On the other hand, it is also a possibility that Trump, might go all out to begin even more trade wars and hence, this is also a threat that global businesses face.

Even the domestic businesses have to worry about whether the economy would continue to boom, more so, as we explained earlier, when the gains from economic growth are going to a few.

In other issues such as Climate Change, Trump is expected to do the bidding of the businesses whereas both Sanders and Warren would go all out to promote the Green New Deal or a variant of it.

Therefore, the odds of either winning would depend on how the business community would either support or not the either of them or whether they would go all out in backing Trump.

Indeed, Bloomberg is now widely seen as the candidate that the corporations would support if they want their person in the White House.

Foreign Interference and the Possibility of the Aftermath Resulting in Chaos and Recession

Another factor that is weighing on the minds of the businesses in the United States is the very real threat of foreign interference in the election that can lead to chaos and confusion if the election is disputed and if either party refuses to accept the results of the election.

Indeed, some experts believe that this can lead to longer term recessionary pressures on the economy and immediate fallout being the markets crashing.

While such farfetched scenarios are unlikely to some extent, there is no denying the fact that many foreign powers would be more than willing to see the United States brought to its knees.

In addition, the body polity is so polarised that it is fertile ground for creating chaos and the election might even see people on the streets protesting the result.

Therefore, this is another aspect of this year’s election that is worrying the business community in the United States.

Moreover, there are enough indications that the economy is being artificially pumped up and hence, the good times can quickly end with an outcome that is of the types described above.

This is the reason why some commentators are predicting a recession in the next few quarters.

Concluding Thoughts

Last, this election also would determine where the business community stands on almost all issues as until now, they used to back both sides.

Now with the socialist leftist candidates in fray, they might even come out fully behind Trump or Bloomberg.

Therefore, this is another reason why the election is pivotal for the American businesses.

Moreover, this election would also test whether the United States continues to be a responsible stakeholder in the global economy or whether it would renege on its multilateral commitments.

To conclude, the Push is coming to shove this year with the upcoming election.

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