Goldman Sachs cuts US economic forecast after Joe Manchin rejects Build Back Better
www.cnn.com
Senator Joe Manchin's opposition to the Build Back Better Act prompted Goldman Sachs to swiftly dim its US economic outlook.

Help me understand. Why aren't the bankers using their leverage to make Manchin do it?

Is there disagreement between different factions of the bourgeoisie? Maybe BBB is good for the financial but not the industrial idk

  • half_giraffe [comrade/them]
    ·
    3 years ago

    These two paragraphs shed some light:

    The lowered chances that Build Back Better has "negative implications for near-term consumption" but will likely have some "offsetting positive effects" for financial markets, Goldman Sachs said.

    Specifically, the chances of corporate tax hikes have faded — and those higher tax bills would have eaten into the bottom lines of S&P 500 companies. It's also a positive for biotech companies that would have been hit by $100 billion in price reductions in the Medicare program, Goldman Sachs said.

    So I don't see this as some infighting amongst the elites, but rather a sober analysis that BBB isn't that consequential of a bill anyway (something leftists have been saying since the get-go). Unless they really want the Dems to have a win leading into the midterms (which who cares), capitalists will be practically unchanged whether or not the bill goes through.

    • PlantsRstillCool [des/pair]
      ·
      3 years ago

      That's a good point. Any sort of gains from BBB would be wiped by a tax increase. If the bill won't be that great anyway, they might as well not risk it