Home \ 2020 Election Scorecard #1 Results

2020 Election Scorecard #1 Results

Category #1 Results: Support the Real Economy, Jobs and Prosperity for All
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KEY

 = Is a leader on this issue    Supports this issue     Has a mixed record on this issue

  Has a poor record on this issue     Checkmark_ID.gif  There is Insufficient Data (ID) on this issue   

CANDIDATE   



TRUMP



BIDEN

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WARREN



SANDERS

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HARRIS

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BOOKER

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YANG

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BUTTIGIEG

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Does the candidate have a plan to:

1a. Ensure Wall Street focuses on lending to individuals and businesses, not anti-social trading that doesn’t benefit the real economy?

Too much of the activity in the financial sector is driven by the short-term, bonus-driven culture that pervades Wall Street’s biggest firms.  We need to return to the days when finance existed to serve Main Street customers and the real economy - individuals and businesses – instead of the zero-sum, heads-I-win/tails-you-lose trading of paper assets that too often dominates finance.

We evaluate the candidates based on whether they have a plan to return Wall Street to serving the financial needs of the larger society and address the short-termism that influences too many financial firms. Back to Top

1b. Tie CEO/executive compensation to actual value creation from real products and services and ending bonus-driven risk-taking?

Wall Street has fought nonstop against common-sense rules that would require financial firms to disclose sufficient information to determine the full compensation packages for their CEOs and executives, including in relation to the pay of their average employees.  In addition, they have fought rules that require ill-gotten gains to be clawed back and that require limitations on compensation packages that focus on the short-term and that incentivize high-risk behavior.  Pay unrelated to actual performance, excessive pay, out-of-control bonuses, upside-down incentives and the prospect of irresistible get-rich-quick activities cause much of the reckless, illegal and anti-social behavior in finance.  Those practices must be eliminated or limited.

We evaluate the candidates based on whether they have a plan to comprehensively address these compensation issues. Back to Top

1c. Ensure banks have enough capital to support the economy and lend throughout the business cycle so they don’t add to downturns?

Banks require sufficient quantity and quality of capital to be able to absorb the losses from their profit-maximizing activities in the ordinary course of business.  They must also have enough capital to absorb losses during the inevitable periodic economic downturns, when losses increase as the economy slows, unemployment rises, and businesses fail.  In addition, because downturns effect all the firms in finance, each financial institution must have sufficient capital to deal with the potential failure of other systemically significant financial firms, so that they too don’t get dragged into the economic downdraft.  If financial firms have the capital necessary to handle those multiple scenarios, then they will be able to absorb losses while still lending through the business cycle, thereby helping the recovery.  Ensuring that banks hold sufficient capital to allow them to perform their social function through the business cycle and not require bailouts or extraordinary assistance is an essential part of any plan to get finance back to serving society and heading off the next financial crisis. 

We evaluate the candidates based on whether they have a plan to ensure strong capital requirements on the largest and most risky financial firms and their activities. Back to Top