Five questions for Joe Biden about the economy

Joe Biden will become the 46th president of the United States after defeating incumbent President Donald Trump in a fiercely divided election that takes place while the country is still recovering from the corona virus pandemic.

However, his plans for the next four years will likely face the challenge of a divided government, as Republicans declare a major victory in Congress.

It was a situation that many analysts said caused Bide’s most ambitious plans to “die” as soon as he took office.

Here are five questions you must face with the American economy.

For months, economists asked Washington for more funds to rescue Covid-19. But the talks came to a standstill when Republicans rejected the size of the spending plan proposed by Democrats, despite some pressure from Trump that forced his party to cave.

Republicans have said they will get a deal, but if not, Democrats’ hopes are beginning to waver. And then the recovery from the epidemic will suffer and how much more will Biden get more out of the budget, known as moderate to moderate?

During the campaign, Mr. Biden supported debt relief plans for student loans, increased social security payments for retirees, and invested money in small businesses. He also made more ambitious proposals, such as investing $ 2 trillion in areas such as clean energy, infrastructure, and public transportation.

But Republicans are likely to be even stronger in their opposition to the White House spending proposals from the Democratic Party, and this means a tough fight.

As income inequality in America reached its highest level in more than 50 years, liberals forced tax increases on the wealthy, a proposition that polls showed for public viewing. widely supported.

During the campaign, Biden called for a repeal of some parts of the 2017 tax cut signed by Donald Trump, promising to raise the tax rate on businesses from 21% to 28%, along with the changes. other.

Outside groups estimate his plan could raise more than $ 3 trillion over the next decade, an amount that could be welcome as the pandemic increases America’s national debt.

But while Biden’s proposals are not as broad as some of the others endorsed by members of his party, any attempt to raise interest rates will be subject to a tough fight from the party. Republicans and business groups, who argue that higher taxes will hurt the economy.

With the economy in a volatile state, is Mr. Biden still bothering to push the issue?

Climate change activists were disappointed when Biden unveiled his first climate plan.

But this spring, he returned with a lengthy proposal, planned with the help of some of his critics and described as the most ambitious ever submitted by an applicant. The American president.

The proposal includes investing $ 400 billion in renewable energy research, tightening regulations on car pollution, stopping pollutants at the company, and building 500,000 electric vehicle charging stations. and eliminate carbon pollution from power plants by 2035.

Republicans warned that this plan would “bury” the US economy. But enacting even a limited edition, or a version focused on regulation that he could enact as president, would mark a marked turning point in the Trump years, when the White House expanded public land for oil drilling, slashed regulations and boycotted global efforts, such as the Paris Climate Treaty.

So what proposals will Mr. Biden prioritize?

Donald Trump’s belligerent business stance – attacking allies, criticizing international organizations, and imposing new border taxes on goods imported from countries around the world – is perhaps economic policy. its most special.

There is little doubt that Mr. Biden will seek to reestablish, reaffirm America’s role as an ally and leader in the world, but in essence, how different it will be. ?

As for China, it has vowed to act “aggressively” and few expect it to soon remove the tariffs Trump imposes on Chinese goods in his trade war. As my colleague Karishma Vaswani wrote before the elections, China does not expect support, no matter who the winner is.

The former vice president also supported the idea of ​​tariffs in some cases, establishing a tariff scheme for countries that do not comply with their climate and environmental obligations. And like Trump, he vowed to revive America’s manufacturing industry, with stronger “Buy America” ​​demands on government spending, and that could cause America to run afoul of the rules. International Trade.

International organizations and long-term allies Trump rejected, such as Canada and Europe, can expect fewer attacks. But some of the stress is likely to last.

And specifically in the case of the UK, accepting a trade deal could become more difficult, not less, as Biden has made it clear that such a deal is not a high priority and may hinge on what Brexit means for the Irish border.

The activities of America’s tech giants are under scrutiny around the world and in the domestic market, where politicians on the left and right have called for stricter rules in sectors such as competition and consumer privacy.

Biden has advocated the business division as a “last resort” and has criticized Facebook and others for not doing enough to monitor false information and other malicious content on their platforms. . He said he supports the cancellation of US laws to protect tech companies from liability for content posted on their platforms.

But he and Vice President Kamala Harris, who received broad support in Silicon Valley, were unusually silent on the issue. For example, they don’t talk about their position on the campaign website.

Various changes are being discussed that require action by Congress. But the White House itself wields considerable power to conduct competitive investigations, enforce privacy and other regulations, and can decide whether to oppose international action, such as forces in the UK and elsewhere to collect additional taxes from tech companies. .

So with his powers in other areas limited by the Republican presence in Congress, but still pressed to present the liberal base of the Democratic Party, if Biden will prevail. Is it the law of the technology sector or will this issue be neglected?