As we move closer to the 2024 presidential election, Nouriel Roubini, Roubini Macro Associates CEO and NYU Professor of Economics, sits down with Yahoo Finance Senior Columnist Rick Newman at Yahoo Finance Invest to discuss economic policy “continuity” between President Joe Biden and Former President Donald Trump.

“Regardless of whether Biden wins or Trump, policies that are of derisking, of protectionism, of deglobalization, of decoupling, on one side, restricting migration, a greater role of subsidies to favorite sectors that are… important… are going to remain,” Roubini explains. “The policies of Biden and Trump on climate change are very different,” but Biden’s Inflation Reduction Act “is actually very popular in red states and they’re investing massive amounts of money into all these renewable energy.” “I would say there’ll be more continuity in terms of economic policy, rather than differences between Trump and Biden,” Roubini says.

On income inequality, Roubini adds, “if you can invest in your country,” and invest into things like infrastructure, manufacturing, and reshoring, “over time, those types of policies can help blue collar, white collars, and those left behind, regardless of who is in power.”

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Video Transcript

NOURIEL ROUBINI: Well, I think that regardless of whether Biden wins or Trump, policies that are of the risking, of protectionism, of deglobalization, of decoupling on one side, restricting migration, a greater role of subsidies to favorite sectors that are strategically important, whether it is semiconductors or others are going to remain.

Of course, the policy of Biden and Trump on climate change are very different. Biden has passed the IRA Act. But that IRA Act is actually very popular in red states that are investing massive amounts of money into all this renewable energy. So it's going to stay. Those subsidies are going to be there regardless of who is in power.

So I would say, there will be more continuity in terms of economic policy rather than differences between Trump and Biden.

RICK NEWMAN: You're--

NOURIEL ROUBINI: On income inequality, I would say, there's been a massive rise in income and wealth inequality. That's why even the GOP has become populist and against Wall Street. Big business, big tech is not very easy to address income and wealth inequality. But if you can invest in your country, invest into infrastructure, invest in manufacturing, investing into reshoring, over time, those types of policy can help blue collar, white Collars, and those left behind, regardless of who is in power.

RICK NEWMAN: You're endorsing protectionism to some extent. Correct?

NOURIEL ROUBINI: I'm not endorsing protection. I'm saying, there are some elements of de-risking or decoupling that for geopolitical reasons we have to do. As Jake Sullivan said, we want a small yard with high fences to see what's actually truly strategic. And paradoxically, when Trump imposed tariffs against Chinese goods, those were just consumer goods. They were not strategically important.

Well, in the case of Biden, it's semiconductors, technologies, and other things that are strategically important to the United States. So even if you won't do the risk, you have to do it the right way.