Will Biden fix what Trump has spoiled? ... Economic files on the new presidency table

During the past four years, the US economy has gone through a set of changes that were worthy of changing its map, especially with regard to foreign economic relations, as the world lived the reality of a trade war that Trump led during his presidency in America.

And US policies during the last period have led to what is known as a currency war, and the use of interest rates for local currencies to influence foreign trade and attract foreign investment.

The US economy also turned to trade protectionism, which led many countries to approach this policy, raising concerns about the future of free trade.

But the World Trade Organization as well.

It is well known about the economic policy of the Republicans in American history that they tend to neoliberal policies and do not care about the issue of public debt and its impact on the budget.

Therefore, they tend to reduce the interest rate and reduce taxes, which is what we have seen in Trump's practices during the period 2017-2020.

On the contrary, Democrats are heading to address debt issues, raise taxes and address budget deficits.

However, the global financial crisis in 2008, made the Obama-era Democrats expand public debt - against their will - in order to increase spending and counteract the recession and recession resulting from that crisis.

As for Joe Biden, "the elected president of America for days, who has been in power during the period 2021-2024", he will find himself facing a set of challenges, which will inevitably lead him to adopt a new economic agenda, the features of which can be observed as follows:

Increase public spending

Joe Biden will find himself compelled to continue to pursue a policy of increasing public spending, given the economic and social challenges posed by the Corona pandemic, as well as the high number of unemployed in American society, as figures released by the Federal Labor Office indicate that the unemployment rate reached 7.9% in September. 2020, compared to 10.4% in April 2020, which means that easing restrictions on the Corona pandemic has led to a reduction in unemployment there.

However, the challenge of the unemployment rate falling below the 4% ceiling remains, and it requires public spending and economic policies that encourage investment, in light of fears of the second wave of Corona.

It is expected that the financial and monetary policies in America will continue as they are present at least in 2021, in terms of low interest rates and the depreciation of the dollar, in order to encourage investment and exports.

This, in turn, will increase public debt rates, surpassing what it is now at about $ 24 trillion.

Biden will find himself forced to continue to pursue a policy of increasing public spending to counter the repercussions of the Corona pandemic (Getty Images)

Calm down economic ties with China

Both America and China exchanged decisions to raise tariffs, 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 to 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;

However, everything remained as it was from a threat to China's trade with America. Indeed, American, European and Japanese investments left China already, fearing that the trade war between the two countries would expand.

According to US trade statistics, the policies that Trump adopted towards trade with China led to a reduction in the value of trade exchange between the two countries from $ 659 billion in 2018 to $ 557 billion in 2019, and the value of trade exchange during the first nine months of 2020 reached 384 billion. Dollars.

The decrease in the value of trade exchange reduced the surplus in favor of China during this period from 418 billion dollars in 2018 to 345 billion dollars in 2019, and then to 222 billion dollars during the first nine months of 2020.

However, with the policy of Joe Biden, it is expected that economic relations with China will improve, and new rules will be agreed upon that will remove the tension and help the flow of trade between the two countries, even if America will seek to achieve its objectives of trade with China according to soft mechanisms, and not through direct confrontation, As Trump did.

America will be keen to keep the technology keys in her hands, even if China excels in its trade with it in light of goods and products that do not include China's technological superiority.

It is also expected, with the policy of Joe Biden, that America will get rid of the concentration of its trade with China during the coming period, and work to increase its trade with other countries, characterized by the advantages of trade with China itself, in terms of cheap products, and at the same time the same rates of quality, which is what you will find. In abundance through the countries of Southeast Asia.

The policy of America not concentrating its trade with China will lead to the intertwining of its interests with other countries, and the feeling of more countries having interests with America, and at the same time America will not give China an opportunity to make trade a pressure paper in its relationship with it.

The trade war launched by Trump has greatly affected US-China relations (Getty Images)

Let Iran breathe economically

The economic sanctions imposed by Trump on Iran have led to many difficulties for the situation in Iran, as the value of the Iranian currency has declined significantly, inflation and unemployment rates have increased, and the blockade on Iranian oil exports has tightened.

This prompted Iranian President Hassan Rouhani to say that what his country is suffering under the current economic sanctions has not been witnessed like it in 40 years.

It is expected that Joe Biden's policy towards Iran in the coming period will take place to return to the (5 + 1) agreement regarding the Iranian nuclear program, even if the matter takes a new form.

Returning to better economic relations with Iran will bring many benefits to several parties, including America, which suffers from recession and recession, and Europe, which is America's partner in the economic sanctions on Iran.

And in the event that Joe Biden tends to lift the US and European economic sanctions on Iran, and allow it to export oil, this would be a way out for Iran from many economic and social problems, on top of which is the return of the flow of dollar revenues, which will restore the Iranian local currency its value at moderate exchange rates, and reduce inflation rates And it will enable Iran to implement its plans for infrastructure projects, and to operate oil and gas wells according to modern technologies that allow it to have better production rates.

Iran will not be the only winner from the lifting of economic sanctions.

But American companies will welcome this step as well, because that means exporting aircraft, machinery and equipment to Iran.

It is the American goods that Iranian society, especially the youth, aspires to.

And Europe, which suffers from slowing economic growth, is eager to restore its contracts with Iran, so that the status of its companies will move positively.

Many European companies had won contracts with Iran;

But it left the Iranian market, as soon as Trump made his decisions to exit the (5 + 1) agreement, as well as impose economic sanctions on Iran.

It does not mean that Joe Badin has a magic wand;

But he 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 restoring calm economic and commercial relations with the outside world, and restoring the American role in leading the global economy, according to rules that do not collide with the interests of others.