Bidenomic that is Indebted to Donald Trump

“Joe Biden’s going to fight like hell for American workers through trade, enforcing deals and rallying the world to take on China’s abuses,” a senior Biden campaign official told two weeks ago. The plan is called “Buy American” plan, which is centered around a $700 billion dollar investment into American products and research. Biden’s plan would require some federal funds to be set for domestic producers, including $400 billion dollars in government purchasing of U.S based goods and services. The other $300 billion dollars will be spent on research and development. Half of the money used towards research and development will be dedicated towards clean-energy initiatives.

Joe Biden is out with a powerful blueprint promising a Made in America Future for American workers. Among other commitments, Biden’s plan reverses several decades of trade orthodoxy and pledges to use trade policy to promote high-wage American manufacturing. He would complement this with an industrial policy aimed at reviving domestic industries. Biden is very confident to makes a far more explicit commitment than any recent Democratic president or candidate to revive trade unionism and collective bargaining, including strong support for card check to accelerate union recognition and a fight against misclassification of regular employees as gig workers, as well as a $15 minimum wage.

He has also decided to stand against economic globalization, ushering in a continued attempt at bringing about economic nationalism to the world-stage. Biden calls also for a renewal of American manufacturing that seem to be reminiscent to Trump’s own rhetoric. On other word, Biden’s insistence on combating China and spurring U.S. manufacturing is also on the way. Biden and his team are beginning to draft a new governing vision that reflects the scale and urgency of the crisis that Biden predicted may “eclipse what FDR faced”. It’s also said that the task is not entirely new to Biden as vice-president of Obama administration’s who led to response to the recession at the time

All Biden Plans sound more Trump than Donald Trump himself, nationalistic and overly confident. But there are several things that are predicted to be contradictory, both when formulating policy details and when implementing on the field after the policies are taken. What does the $ 700 billion policy looks like for investing in domestic products? In the form of tax easing or fiscal incentives for the American Produser? Isn’t Joe Biden intending to cancel the tax-cutting policy for entrepreneurs and big companies set by Donald Trump?

Or is it in the form of subsidies to American producers? If so, then America should stop accusing China of unfair even cheating on its investment policy. All forms of subsidies for American domestic producers will reduce the resilience of the American economy in the long run. And usually, subsidies cause chronic illness in companies, because it will increase the collusion and dependence of the business sector on the government. That will be bad for American economy that has been leading world economy so far. Or is it to buy American products? What if later it actually shows inefficiency in government spending, because the price of American products is less competitive. This will certainly occur if the investment costs become expensive due to wages increases, tax increases, and various other benefits for workers costs also go up, as Biden promised to Union.

What Joe Biden most likely to do in allocating federal funds is to revitalize and build infrastructures to facilitate business and investment processes in America, just like FDR did. And that requires far more funds than just $ 700 billion. But this will be difficult to present a prospective domestic investment if on the other hand, Biden demands producers to raise the salaries of workers, raise the tax,  and meet various other benefits for union’s interest.

Isn’t that the same as pulling out one difficulty by bringing in lots of other difficulties for companies. During this time, the reasons why companies moved to China are because of the cheap labor costs and various incentives provided by the Chinese government in special industrial zones or in the free trade area. And Biden should also remember that majority of American Worker work in services sector, not manufactures. So he really has to be clear to calculate his economic plan on American Worker.

Then, If  Mr. Biden also wants to try against China, in what kind of policies? Trade war and import duties/tariff? A trade agreement that can force China to buy American products in the name of improving the trade deficit with China, and may be with many other American’s trading patners? Isn’t all of those has been done by Donald Trump and the results have looked very positive, before the pandemic and the Black Live Matter came. Just look at the survey. Gallup discovered that President Trump’s financial approval rating was 63% in January, a unprecedented quantity given the president’s general disapproval score of 51%. Mr. Trump still get good credit before pandemic because of American economic achievement.

The tax cuts predicted to blow a gap within the deficit had generated sufficient further progress so as to add $7.4 trillion to gross home product over the subsequent 10 years, elevating common annual per capita earnings by $2,250. Over the subsequent decade, that elevated progress is projected to generate $700 billion extra in state and native taxes and an extra $1.438 trillion of recent federal income, offsetting the tax minimize’s projected 10-year price of $1.456 trillion.

Labor-force participation has risen by 1.1% underneath Mr. Trump whereas it fell by an astounding 4.6% underneath Mr. Obama. And within the first three years of the Trump administration, complete employment was up 4.7% and actual median family earnings was up $4,384, to an all-time excessive. And finally about fund for research and innovation, it’s undenialable that whoever become president on November should focus on this to keep America on the track of it’s economic super power status. Then if so, why doesn’t Mr Biden just vote Trump?

About the Author
An International Political Economy and Strategic Analyst, A Senior Fellow at Indonesia Economic Action Institution/EconAct
Comments