If Biden Is Re-Elected, Will Prices on These 5 Essentials Keep Going Up?
Written by
J. Arky
Edited by
Rebekah Evans
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The 2024 Presidential Election is just months away and already there is buzz about what is going to happen with the economy if President Joe Biden is re-elected for a second term.
“The Biden administration has been surgical in its support of certain businesses that have run into trouble,” said Cory Johnson, the chief markets strategist at The Futurum Group. “The stock market has seen a 48% better average annual returns under Democratic presidencies compared to Republican ones. Specifically, over the last 100 years, Democratic administrations have overseen average annual returns of around 9.7%, while Republican administrations have seen returns of approximately 6.7%.”
While Biden might have steered the country — and to a greater extent, the global economy — from a recession, inflation is on the rise and essential items keep rising in price. When it comes to the essentials that have inflated in price the most, GoBankingRates asked several financial and economic experts if they will continue to go up in price if Biden is re-elected.
Also see a comparison of prices under Biden versus Trump.
Healthcare Costs
While it’s never been cheap to pay for medical expenses in America, especially compared to countries with socialized healthcare, your next doctor bills could be much higher than you anticipated under Joe Biden as POTUS for the second time starting in 2025.
“President Biden has expressed support for expanding healthcare access and coverage, which could potentially lead to increased demand for healthcare services and prescription drugs,” said Cynthia Asije, CEO at Craftmerce Inc.
“This could put further upward pressure on healthcare costs, including the prices of prescription medications,” she said.
If Biden is re-elected, Andrei Vasilescu, co-founder and CEO of DontPayFull, said that “…we might see a continued rise in prices for healthcare and pharmaceuticals, driven by his policies aimed at expanding healthcare access and funding, which could push spending even higher than the current $3.8 trillion.
“Prescription drugs, already more costly in the U.S. than in many other developed countries, could follow this upward trend,” he said.
Travel
Particularly the cost of airfare, which has steadily gone up in price over the last four years and might continue an upward trend for the next four under Biden’s leadership.
“President Biden is currently advocating for a bill that mandates airlines provide immediate refunds for flights canceled by the airline, regardless of the reason for cancellation,” said Michael Barbera, chief behavioral officer at Clicksuasion Labs.
Barbera said that “If this bill becomes law, airlines will likely pass these additional costs onto consumers, potentially increasing the overall cost of air travel.”
Energy
The Biden administration has emphasized the importance of transitioning to renewable energy sources and combating climate change, Asije explained. That said, these transitions are slow to be implemented and in the meantime the American consumer is feeling the hurt at the gas pump.
“Going green might result in short-term energy price rises thereby affecting transportation,” said Chuck Warren, host of the economic podcast Breaking Battlegrounds. “Stricter industrial regulations to combat global warming and enhance worker rights could raise businesses’ operational costs leading to increased consumer rates.”
“While these initiatives may have long-term benefits for sustainability, they could initially lead to higher energy costs as industries adapt to new regulations and invest in renewable energy infrastructure,” Asije stated.
Imports
From food to cars to everything in between-if Biden takes the White House in November, there could be a higher cost associated with every foreign good imported to the United States.
“Reinforcing local production lines would reduce reliance on foreign markets thus stabilizing some prices in the future but not immediately reducing expenditure,” Warren said, who noted that the global block chain could be affected by re-electing Biden.
“Additionally, the impact of Chinese tariffs remains a significant factor,” Barbera said. “If President Biden is re-elected, existing tariffs on Chinese goods are likely to remain, maintaining higher prices for a range of consumer products.”
Housing
Buying a house or renting an apartment — either option could be more expensive with Joe Biden in office for the second time as President. However, there might also be some light ahead for Americans and their home expenses.
Asije said that “President Biden has proposed initiatives to address housing affordability and provide support for first-time homebuyers.”
“Higher fiscal stimulus and social spending would lead to inflation through increasing demand if supplies do not catch up,” Warren said, which might affect the cost of housing if Biden does take office for a second term.
“While these efforts may aim to alleviate some of the pressure on housing prices, they could also stimulate demand in the housing market, potentially contributing to further price increases, especially in areas with high demand and limited supply,” Asije said.
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