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‘Made all over America, by all American workers’ (Made in America by Americans).
The economic slogan of the Democratic presidential candidate of the United States, Joe Biden, is not very different from that of President Donald Trump. Biden’s “Bidnomics”, which refers to candidate Biden’s economic policy, contains the same principle of priority in the country and pressure on China. The direction for the expansion of employment and the reactivation of manufacturing is the same as that of the current government.
However, the methodology is different. Unlike Trump, Biden has a strong tendency to value the environment and protect workers’ rights. Overall, it is assessed to have a positive impact on the world economy through large-scale stimulus measures and the recovery of the multilateral trade order. However, there is also concern that other forms of US priority could be strengthened.
Candidate Biden criticized the economy after the Republican Party came to power and presented new visions such as “building a better America” and “restoring the middle class.” The plan is to increase jobs by reactivating the manufacturing industry, such as creating 5 million jobs in the United States through investment of finances and raising the minimum wage to $ 15. He also suggested a policy to expand domestic manufacturing production, such as imposing taxes when American companies sell goods produced abroad. The company’s financial resources and income tax were financed by aggressive fiscal policies to protect the socially disadvantaged and strengthen the middle class. It is a plan to lift. President Trump will increase the reduced US corporate tax from 21% to 28% and increase the highest income tax rate targeting the wealthy from 37% to 39.6%. In particular, it plans to reduce tax deductions for high-income families making more than $ 400,000 a year and increase the capital income tax rate from the current 20% to 39.6%. In the field of trade, the multilateral system led by the United States is expected to strengthen. The unpredictable situation, such as imposing tariffs unilaterally like President Trump, is expected to subside, and international organizations such as the World Trade Organization (WTO) or multilateral negotiations are expected to take a strategy to put pressure on China. In this process, the importance of cooperation and solidarity among allies can pose an alternative dilemma for countries that have close relations with both the United States, China and the like, such as Korea. However, there are also observations that Biden will focus on the national economy rather than actively working on trade issues right away. “When candidate Biden made a promise this year, as opposed to the national economy,” said Seol Song-i, senior fellow at the Korea International Trade Association.
The ecological and labor policies are keywords that differentiate the Bidenomia. Candidate Biden plans to invest $ 2 trillion over the next four years to build green infrastructure, expand new and renewable energy, and supply electric vehicles. The Paris Climate Agreement, which withdrew from the Trump administration, also decided to join again. There is a possibility that the environmental regulation of the Biden regime will be expanded as a barrier to international trade by discussing how to impose a carbon adjustment tax on countries that do not comply with environmental obligations. Candidate Biden’s pro-labor policies may also act as export restrictions in areas with strong union influence in the US, such as steel and automobiles.
Experts rated it as positive for the Korean economy in terms of overall improvement in world trade. At the same time, we believe that new challenges such as US-led multilateral engagement and green regulations can be encountered. Seo Jin-kyo, senior fellow at the Institute for Foreign Economic Policy, said: “If the global economy stabilizes, it is a very good sign for the Korean economy, which has a large share of exports.”
Reporter Joo Aejin [email protected] Go to reporter’s page>
Reporter Nam Kun-woo [email protected]
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