Wall Street's Enigmatic Support for Joe Biden's Presidential Bid

Wall Street's leading banks have been boosting Joe Biden's presidential campaign despite his plan to increase corporate taxes and the Democratic party's shift to the left. Bankers are skeptical about the benefits of a Biden administration, but see economic growth and a COVID-free economy as crucial factors in their decision to support the former vice president. Goldman Sachs, for instance, has expanded office space and personnel in China, seeking to tap into the massive market. The Biden administration's economic plan may mitigate the negative effects of the tax increase, with tax breaks and incentives for green investment and 'Made in America' production.

Key Takeaways:

• The Biden administration's plan to increase corporate taxes from 21% to 28% is a significant step for Wall Street, which has traditionally advocated for lower taxes.
• Despite this, Goldman Sachs and other big banks have endorsed the Biden campaign, with Goldman Sachs' chief economist citing the potential for stimulus packages to offset the tax increase.
• The Moody's analytics report predicts that the debt will shoot up over 120% by 2024, regardless of who becomes the next President.
• Banks are eyeing China as a major growth market, with Goldman Sachs expanding its office space and personnel.
• The Democratic party's shift to the left may lead to internal opposition to Biden's moderate economic plan, with Senator Elizabeth Warren and Representative Alexandria Ocasio-Cortez pushing for more progressive policies.
• The Biden campaign's moderate stance on banking may alienate the party's base, which has shifted significantly to the left since 1994, with 49% of Democrats now identifying as liberal.

Statistics:

• 47 trillion dollar market: the size of the Chinese market that Goldman Sachs and other big banks are eyeing.
• 120%: the predicted increase in national debt by 2024, according to the Moody's analytics report.
• 28%: the proposed corporate tax rate under the Biden administration.
• 21%: the current corporate tax rate.
• 6 out of the last 10 election cycles: the number of election cycles in which Goldman Sachs spent more on Democratic than Republican candidates.
• 50%: the percentage of Biden supporters who are voting for him simply because he is not Donald Trump.
• 20 years: the time period during which Goldman Sachs has been active in the presidential campaign.

Sources:

• Market Watch
• CNN
• American Banker
• Moody's Analytics
• Gallup
• Politico
• The Tower