2020 is a key election year in the US and the outcome impacts not just domestic economics, but international relations as well.
While the 2020 Presidential election is still months away, many organizations and businesses are pulling the reigns back when it comes to spending and expansion as they just don’t have all the information needed to make crucial strategic decisions.
No matter the outcome, US presidential election years can be tough on any size business. While businesses continue to operate as strategically as possible, they are far more risk-averse because of the unknowns about who will be the next president, the makeup of the new Congress, and which party will control the senate and ultimately Capitol Hill.
To date, a large number of companies are already dealing with the impact of the Trump administration’s trade policy. Tariffs on US imports as well as retaliatory tariffs on US exports have impacted big and small businesses in various ways and the unknown lasting effects are daunting. While the economy appears to be thriving, there is still a strong awareness of economic uncertainty.
Breaking this down from a party perspective, a victory by either party will have different, but considerable economic and financial risks. A Democratic president may push for corporate tax increases and increased regulation. Generally speaking, Democrats tend to favor policy that benefits low-middle income families and believe that the government should spend their way out of a recession. Progressive taxation is a key factor in their policy and can be detrimental to big businesses.
A Republican re-election could potentially escalate trade wars which could have crippling effects all over the globe. In direct opposition to Democratic viewpoints, Republicans typically support policies that are to the benefit of businesses and investors as well as high income earners. Considered business friendly, they believe in limited government regulation of the economy, and advocate for tax cuts, creating jobs and boosting the economy.
Business leaders can take steps before the election to reduce risk, increase operational efficiencies, and plan for future “what ifs” post-election. Operations is a key area for companies to impact the bottom line, and if you have employees in other countries, ensuring your costs are under control is vital. From HR systems to payroll, working to integrate functions, reduce redundant resources, and ensure compliance are the key to expanding into new markets and maximizing the company budget.
Blue Marble helps companies manage payroll and compliance in 145+ countries on one platform. You have real-time views of your payroll across all countries and currencies, and customized reporting to ensure operations are running on time and within your budget. Our compliance and global HR experts can help you expand into new markets, optimize current operations, and prepare you for global regulation changes. If you are looking to get control of your payroll and compliance overseas, we can help simplify operations, reduce errors, and ensure compliance. Click here to learn more