• Angus Crennan

How is the Vice President Elect of the United States likely to govern?

The United States’ immediate balancing act is between its consumption driven economy and suppressing the spread of the novel coronavirus until a vaccine can be distributed. A host of other challenges also confront the country.

Into this turning point we have a new key office-bearer, the new Vice President Elect of the United States, Kamala Harris.

Kamala’s father was Donald is an economist and professor emeritus at the globally recongised Stanford University. Her mother Shyamala is a biomedical scientist who earned a PhD in nutrition and endocrinology at UC Berkeley. We can imply a great deal from the role models Kamala had in her parents; success in the US’ finest education institutions requires focus, passion, perseverance and respect for academic and scientific processes.

Kamala’s qualifications are in the law and she worked in the US justice system before joining the US Senate in 2017. According to Wikipedia as a senator Harris advocated for healthcare reform, federal descheduling of cannabis, a path to citizenship for undocumented immigrants, the DREAM Act, a ban on assault weapons, and progressive tax reform.

Harris presents well, it is clear she has developed her moral compass and is a values driven person.

If we combine a woman of Harris’ caliber with the resources and expertise available to her as the Vice President then I believe we will see transparent collaboration and logical decision making, in the US national interest, on international matters going forward. This will be a step change from the previous 4 years.

On domestic matters the Vice President Elect seems to be more about people and families than business and economic growth as the answer to all challenges. This would suggest tightening of US regulations and increased protections for US consumers. Regulation changes are relevant to all markets however in particular regulatory changes for tech, education, healthcare, finance and energy businesses will be watched for closely.

With unemployment still high wage inflation is not a concern at present however fast forward several years and if the US recovers quickly the Biden administration might also look to improve wages which can ultimately be inflationary – the long end of the US yield curve will move quickly to price in that risk and so be what I am watching to look for early indications of inflation concerns and the resulting increased nominal costs of debt which follow.

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