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Biden is expected to win the US election and follow-up economic policies will attract attention
Author: Elegant Feng Di Van
On the morning of November 7, Eastern Time, according to estimates by many American media, Democratic presidential candidate Biden obtained more than 270 electoral votes needed to be elected president. At press time from the CBN reporter, dignitaries from more than 20 countries, including Canada, the United Kingdom, France, Germany, India, Japan, South Korea and the leaders of the three main EU institutions, have congratulated Biden on social media.
When the US media expected Biden to win the election, US President Trump went to the Trump Golf Club in Virginia. Trump continued to refuse to accept defeat through a statement issued by the campaign team. The statement read: “Starting next Monday, our campaign team will begin to process our case in court to ensure that electoral laws are fully complied with and the rightful winner is chosen.”
On the night of the local seventh time, Biden and Harris delivered winning speeches as president-elect and vice-president-elect, respectively.
According to the “Financial Times” analysis, with the arrival of a new wave of epidemics in the United States, Biden’s economic priority will be to revive the economy that has been severely affected by the new corona pneumonia crisis. Therefore, negotiations on trade agreements are likely to take a backseat, and economic stimulus plans and infrastructure construction will be at the top of the agenda.
Economic stimulus plan under the epidemic
With the number of new cases in the United States exceeding 100,000 in a single day for several consecutive days, the delay in a new round of relief measures will have a greater impact on the American economy.
According to Reuters, Biden hopes to implement the “Emergency Action Plan to Save the Economy” at the beginning of his presidency. He intends to use wartime legislation called the “Defense Production Act” (DPA) to compel American companies to produce personal protective equipment (PPE), medical supplies, ventilators, and any other products the United States needs. to respond to the epidemic.
Biden has also developed plans to increase unemployment insurance, send more direct payments to troubled Americans, waive some student loans and provide more assistance to small businesses.
However, if the United States Senate is still controlled by the Republican Party, it will be a big question mark whether this plan can be implemented without problems. According to estimates by the US Congressional Budget Office, in the 2020 fiscal year ending on September 30, the US budget deficit reached a record $ 3.13 trillion. The federal fiscal deficit as a percentage of the U.S. gross domestic product (GDP) increased from 4.6% in the previous fiscal year to 15.2%, a new high since 1945.
Wang Yong, a professor at the Peking University School of International Relations and director of the International Political Economy Research Center, said in an interview with a China Business News reporter: “After Biden took office, the agenda more important remains to prevent and control the epidemic and contain the current outbreak of COVID-19. Because this is the basic prerequisite and condition for the United States economy to resume growth. Therefore, first, he will spend the most amount of energy to prevent and control the epidemic to be really effective.
“Second, I think the Biden administration will approve the rescue and relief plan as soon as possible. The economic stimulus plan was blocked some time ago due to bipartisan politics. After he takes office, Biden should commit to adopting From an economic point of view, I believe In the future, the United States should introduce a large-scale policy measure, including increasing investment in infrastructure, adjusting the industrial structure related to climate change, and investing in basic education and technological research and development, “said Wang Yong.
“Trade policy begins at home”
Biden said in a previously published article: “Our trade policy must start at home and strengthen our middle class, our most important asset … This will have to affect our infrastructure such as broadband, roads, railways, energy grids, cities smart people and education have made huge investments. We must equip every student with the skills necessary to land a good job in the 21st century, ensure that all Americans have access to high-quality, affordable health care; The minimum wage rises to $ 15 an hour, leading the clean economy revolution and creating 10 million new good jobs in the United States, including union jobs. “
Biden proposes to invest $ 7.3 billion in new spending over 10 years, including improving the nation’s highways, bridges and highways; build a clean energy economy; invest in research and development to support manufacturing; ensure that the government and its contractors buy US products; Community colleges for enrollment; to ensure that people have access to affordable child care services and universal preschool education; and to assist Americans in buying or renting a home.
Biden also said, “I will use investment in research and development as the cornerstone of my presidency to make America a leader in innovation. In terms of clean energy, quantum computing, artificial intelligence, 5G, high-speed rail, or the race. to end cancer “. We have no reason to fall behind anyone. “
Additionally, Biden has promised to withdraw most of Trump’s tax cuts. In his proposal, Biden will increase the corporate tax rate from 21% to 28%; penalize companies that send jobs abroad and impose a minimum tax on all foreign income from US companies located abroad. For individuals, Biden will increase the maximum personal income tax rate to 39.6% and force those with an annual income of more than $ 1 million to pay the same tax rate as their wages on investment income. Additionally, Biden promised to raise taxes only for people with an annual income of more than $ 400,000.
However, Moody’s chief economist Mark Zandi said that if Republicans still control the Senate, only a small part of the bill can pass, but Republicans can agree to some spending on infrastructure and social services. In exchange for tax cuts for the middle class.
More predictable in trade policy
Wendy Cutler, a former trade negotiator for the Office of the United States Trade Representative (USTR), said the Biden administration will be more predictable in terms of trade policy.
According to the “Wall Street Journal” report, Biden proposed that federal agencies buy only US goods and services, and proposed punitive measures to impose taxes on US companies that transfer jobs and manufacturing abroad.
But Biden appears to be weakening the role of trade policy. This spring, Biden published an article in “Foreign Affairs” magazine: “As president, I will not sign any new trade agreements until we invest in the American people and ensure that they have the ability to succeed in the world economy.”
Additionally, Biden hopes to ease trade tensions with Europe. But this means resolving some important differences, including the decades-long dispute over aviation subsidies and the debate over how to tax big tech companies fairly. Biden’s senior policy advisor, Jake Sullivan, also said, “Common sense tells us to use our bargaining chips more consistently and seriously, rather than threats and harassment.”
On multilateral issues, advancing reform of the World Trade Organization (WTO) and formulating new rules for subsidies and other non-market activities are Biden’s top priorities.
It will return to the Paris Agreement on the day of its inauguration.
During the campaign, Biden presented a series of measures to improve climate and environmental problems and promote the energy revolution both at home and abroad.
The United States officially launched the withdrawal process from the Paris Agreement on climate change on November 4, 2019. According to the relevant regulations, the withdrawal process takes one year. On November 4, 2020, the day after the US presidential election, the United States officially withdrew from the Paris Agreement.
On the same day, Biden said on social media: “Today, the Trump administration officially withdrew from the Paris Agreement. After 77 days, the Biden administration will rejoin.”
Biden’s statement is in line with the Democratic Party’s ongoing commitment to support the Paris Agreement. Not only that, in the previous campaign, Biden also proposed a series of measures to support the response to climate change at the international level of action. According to an incomplete analysis by a China Business News reporter, this includes: following your election, you will host a global climate summit to engage in direct dialogue with leaders of major carbon emitters on climate issues; promote the withdrawal of fossil energy subsidies worldwide. And promote the Group of Twenty (G20) to stop providing financial support to high-carbon projects abroad; promote the implementation of the results of the emissions reduction negotiations of the aviation industry and international maritime transport; support the Montreal Protocol (based on The Gary Amendment) and the fulfillment of the United States’ international commitments on climate finance and the provision of ecological debt relief programs for developing countries.
In the United States, Biden’s climate plan includes investing two trillion US dollars in climate action over the four-year period; establish a set of clean energy standards that will enable the American energy industry to achieve carbon neutrality by 2035, while promoting the United States. Achieve zero net emissions by 2050.
(China Business News reporter Kang Kai also contributed to this article)
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