America Decides- What This Means to the Economy of the Country

The United States elections are just a day away, and the world is eagerly waiting to see who will win the hotly contested post. The American citizens are particularly keen to see the results since it has been clear that this year’s elections will lead to a lot of economic changes. The two presidential aspirants, throughout their campaigns, have expressed their policies concerning and their vision to strengthen the economic situation of the country.

Minimum Wage

This has been a debate for a very long time with both democrats and republicans trying to increase the minimum wage. Well, it is the one thing that the two aspirants; Hillary Clinton and Donald Trump agree on. However, as expected, they are not agreeing on the exact minimum wage as Clinton says she’ll push for a minimum of $12 while Trump is moving that the minimum should be $10 an hour. Another point that both candidates are agreeing on is that states with increased living costs such as the capital city should have a policy that supports a higher minimum wage for the people to meet their daily needs.

Stand on the Federal Reserve

The feds is another point of concern to American’s due to the harsh remarks by presidential candidate Donald Trump. According to him, the Federal Reserve has a liking towards president Obama’s government hence only putting in place policies that favour the president. He claimed that the Federal Reserve has been maintaining low-interest rates in an aim to keep prices down which according to him is bad for the country. The Federal Reserve is in charge of determining most decisions about the economy of the country including interest rates, which have a huge impact in the growth of the economy. Trump has mentioned that he will not support the nomination of the Federal Reserve president Janet Yellen. On the other hand, Clinton is in total support with the way the feds is working, meaning that she will be maintaining the current state of affairs in the institution.

Increase and Decrease of Taxes

This is a very controversial topic that has brought up so many debates in the country. According to Clinton, she is supporting the increase of taxes paid by the rich from 39% to 43%. This move is meant to reduce the national budget deficit that the country faces by over $1trillion in the next ten years. She has also said that if elected president, she will put in place policies to prevent American firms from setting up their headquarters in other countries where they pay fewer taxes. This will eventually force them to remain in the country leading to a higher income tax. Trump, however, has said that he will push for a reduction of taxes from 35% to 15%. According to him, this will elevate the economy and will prevent the major American firms from relocating to other countries. This move is set to deny the country over $9.6trilion which tax experts call an unsustainable move that will probably lead to a financial crisis.

As the election period is coming to a close, a lot of American’s are looking forward to finding who will win the Presidential position and what that will mean for the country. Being that the U.S is a major economy, it means that other countries in the world will also be affected economically by the results.