Economically, the outcome of the election could not be worse, Felix Salmon writes.
- Gridlock is being cheered by financial markets wary of political overreach, but stocks are not the economy. In the depths of a global pandemic, fiscal boldness is exactly what's needed for the economy as a whole.
Why it matters: The first wave of coronavirus in the U.S. was met with massive fiscal stimulus; the current wave won't be. Layoffs at state and local governments are just beginning, and many service industries will convert furloughs to layoffs if the pandemic continues to rage. That's enough to create a so-called double-dip recession.
- "A second dip is very likely in the absence of some major stimulus from Washington," Center for Economic Policy Research chief economist Dean Baker tells Axios.
Bonus: Biden's plans to raise taxes on the wealthy and lower the amounts people can give tax-free to their spouses and heirs are unlikely to survive a Republican Senate.
