Biden's refusal to step aside could have economic impacts, expert warns
Biden remaining in the 2024 presidential race could bring 'its fair share of economic risks,' CEO says
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President Biden insists he will stay the course in pursuing a second term as commander in chief despite growing calls for him to step down as the presumed Democratic nominee, but one expert says the president's refusal to withdraw from the 2024 race could have economic implications.
"In a nutshell, Biden staying in the race could bring some policy consistency, but it also comes with its fair share of economic risks," Aaron Cirksena, founder and CEO of MDRN Capital, told FOX Business. "We’re talking market volatility, rising debt, higher taxes, trade issues, energy sector changes, inflation, and more regulations. It’s a lot for businesses and investors to navigate."
President Biden speaks during an event at the White House in Washington, D.C., on Oct. 23, 2023. (Anna Moneymaker/Getty Images / Getty Images)
Market jitters
Cirksena says even though some might think Biden staying at the top of the ticket could mean stability, it could actually make markets pretty jumpy, arguing "investors aren't too fond of uncertainty, and his policies have caused some stir before."
Acknowledging that the markets appear to be going gangbusters right now, Cirksena said in an interview, "The market, I think, is pricing in the fact that if Biden stays in the race, that Trump is likely to beat him."
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Rising debt concerns
Cirksena says Biden's big spending plans, especially on infrastructure and social programs, might push the U.S. national debt even higher. "This isn't just a number," he said, "it could have real consequences for economic stability and future generations."
When pressed on arguments that Trump was a big spender during his first term, too, the MDRN Capital CEO said the pandemic put the former president in an unorthodox position of needing to spend money to keep the economy afloat.
Former President Trump and President Biden participate in the CNN Presidential Debate at CNN Studios in Atlanta on June 27. (Justin Sullivan/Getty Images / Getty Images)
"With Biden, since COVID has calmed down, the spending has just continued and probably at an even higher pace," he said. "At a certain point, I think you have to start reeling in some of the government spending on some of these different programs and things that the Biden administration has had."
Tax increases and business worries
"Higher taxes on corporations and the wealthy sound good to some, but they might scare off business investments," Cirksena said. "This could slow down growth, hurt corporate profit, and potentially lead to layoffs."
Inflation worries
Under the Biden administration, the inflation rate ballooned from 1.4% to 9.1% in June 2022. Although rising prices have now eased to 3% year-over-year as of June of this year, inflation remains well above the Federal Reserve’s target rate of 2%.
A timeline of the U.S. inflation rate throughout President Biden's first term in office through June of this year. (FOX Business / Fox News)
Cirksena says the prospect of another Biden term in the White House could reignite fears of further unnecessary government spending.
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"All that stimulus could overheat the economy, leading to higher inflation," he said. "If that happens, our purchasing power takes a hit, and the Fed might have to step in with higher interest rates, which could slow growth."