Joe Biden's Economic Policy Outlook
During the past four years, Trump led a trade war in which the US economy went through a set of variables that were worthy of changing his map, especially with regard to foreign economic relations.
As the American policies during the last period led to what is known as the currency war and the use of the interest rate of local currencies to influence foreign trade and attract foreign investments. The US economy also turned to trade protectionism, which led to the approach of many countries to this policy, which raised concerns about the future of freedom of trade and even the organization Global trade too.
As for Joe Biden, the president-elect of America who has been in power during the period 2021-2024, he will find himself facing a large set of challenges. The number of unemployed.
It is expected that the fiscal and monetary policies in America will continue in their current state at least in 2021 in terms of low interest rates and a decrease in the value of the dollar, in order to encourage investment and exports, which leads to a rise in public debt rates to exceed what it is now at about $ 24 trillion.
Also, with regard to China, both America and China exchanged decisions to raise customs duties with the advent of Trump as President of America, and Trump's decisions were the first in this field, and China was keen to respond in kind and not start practicing decisions to impose customs duties on imports from America.
Although a preliminary agreement was reached to overcome this crisis between the two countries, everything remained as it was of a threat to China’s trade with America. Rather, American, European and Japanese investments left China already, fearing that the trade war between the two countries would expand. However, with Joe Biden’s policy, it is expected to improve. Economic relations with China and that new rules be agreed upon that remove tension and help the flow of trade between the two countries, even though America will seek to achieve its objectives of trade with China according to soft mechanisms and not through direct confrontation.
Also, Iran is hoping for an improvement in its economic situation, as the economic sanctions imposed by Trump on Iran have led to the emergence of many difficulties to the situation in Iran, where the value of the Iranian currency has declined significantly, the rates of inflation and unemployment have increased, and the blockade on Iranian oil exports has increased, which prompted Iranian President Hassan Rouhani to say that what it is suffering. His country, in light of the current economic sanctions, has not seen anything like it in 40 years.
It is expected that Joe Biden's policy towards Iran during the coming period will take place to return to the (5 + 1) agreement on the Iranian nuclear program, and to return to better relations with Iran economically, which will bring many benefits to several parties, including America, which suffers from recession and depression, and Europe, which is America's partner in economic sanctions. On Iran.
In the event that Joe Biden tends to lift the US and European economic sanctions on Iran and allow it to export oil, this will be a way out for Iran from many economic and social problems, on top of which is the return of the dollar revenue flow that will restore the Iranian local currency its value at moderate exchange rates and reduce inflation rates and will enable Iran to implement its plans. For infrastructure projects and operating oil and gas wells according to modern technologies that allow them to have better production rates.
Despite this, these remain only expectations, but Biden will be required to move quickly at the local level to confront unemployment rates in light of the second wave of Corona, and he will also be keen on the return of calm economic and trade relations with the outside world and the restoration of the US role in leading the global economy