More on the Goldman Sachs tip for a further $600bn in stimulus if Dems sweep Georgia

Author: Eamonn Sheridan | Category: News

I posted on the GS view earlier here:

Just adding a little more detail on the Goldman Sachs projection for further spending:
  • If Democrats manage to win both of the Senate seats in play in Georgia, they would win 50 seats, which would allow Vice President-elect Harris to cast the tie-breaking vote. 
  • This would lead to greater fiscal stimulus
  • we would expect around $600bn more on top of the recently enacted $900bn
  • but would also likely mean tax increases to finance additional spending
  • Regarding the latter, we would expect that an evenly divided Senate would approve only a fraction of the tax increases the Biden campaign proposed. 
On the Dem's prospects to win GS say this:
  • There are encouraging signs for Democrats in the Senate runoffs
  • Prediction markets appear to take the same view and imply nearly even odds that Democrats win both seats, up from around 20% shortly after the November election

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