- In the run-up to the US Elections: economic strategies and billionaire support
- Which corporations support one candidate or the other?
- Elections will set a new spending record
In the run-up to the US Elections: economic strategies and billionaire support
With just a few months to go before the US presidential elections, the main debates in the political arena revolve around two key issues: how the losing side will behave and what financial policies the Democratic or Republican administration will pursue. Normally, donors from different industrial sectors rush to support different candidates, but this time, their support could determine not only the future direction of US policy but also the direction of the global economy.
Democratic candidate Kamala Harris and Republican candidate Donald Trump diverge views on US financial policy. While Harris's position is dominated by promises of reform and support for the US budget, Trump's emphasis is on returning capital to the US, putting economic pressure on China, and supporting Israel. Trump also favours weakening the dollar through trade and currency wars, a position that reflects the Republican desire to strengthen US industry based on competitiveness.
Which corporations support one candidate or the other?
Historically, big donors have tended to allocate funds to hedge their bets, but this time there is a clear difference between the support for Harris and Trump. The technology sector, dominated by IT companies, is likelier to choose the Democratic candidate, supporting her positions on cyber security, health and climate change. According to some sources, Harris is backed by over 80 US billionaires, including Microsoft founder Bill Gates, who has invested in Harris's structures to promote health, poverty reduction, and climate change programs.
The Republican candidate Donald Trump, although not as well supported by billionaires as his rival Kamala Harris, has strong financial backing from specific industry sectors and conservative movements. His campaign is based on businesses that are interested in liberalizing the regulatory and tax environment and in a strong defense policy. Much of his support comes from the oil, gas and other fossil fuel industries, which seek to preserve or even extend existing energy policy preferences. Trump has demonstrated his support for the fossil fuel industry during his presidency by reducing regulation and relaxing environmental requirements, and the industry's leaders support his ambitions.
As in the past, Trump enjoys warm support from real estate developers and the construction industry. Leaders in this sector appreciate his advocacy of tax cuts and economic liberalization, which facilitates investment in construction projects and reduces red tape.
Some executives of small and medium-sized manufacturing companies also support Trump. They hope his policies will enable them to cut costs and be more competitive in the global market, while his promises to increase US industrial production provide a solid financial backstop.
Although Trump does not unequivocally support the defense sector, some companies involved in national security technologies appreciate his support for strengthening national defense and increasing spending in this area. Companies such as Palantir Technologies support his stronger national security policy strategy.
Some of Trump's supporters are also organizations with conservative values that support the ideas of smaller government and tax cuts. These areas form the backbone of Trump's campaign and support him on his promises to stimulate economic growth, reduce regulation, and strengthen US defense. As political analysts have noted, these policies are most attractive to entrepreneurs and investors in these areas.
Elections will set a new spending record
According to OpenSecrets, the 2024 election campaign will be the most expensive in history. The estimated cost is $15.9 billion, but inflation adjustments show that the 2020 campaign was still more expensive. This means that the political battle is intensifying and each candidate is trying to win the support of the biggest global corporations.
The Democratic candidate is often described as a globalist, but some analysts argue that this description is more appropriate for the Republican candidate. According to them, Trump represents the traditional values of globalization, which promote the expansion of US interests abroad, while Harris leads the so-called ultra-globalist trend. This group includes the Democrats' main supporters, the IT sector and the pharmaceutical industry, whose interests often focus on strengthening cyber-security and so-called 'biosecurity'.