Biden Wants to ‘Heal’ the U.S.
Will He ‘Heal’ the Beauty Industry?
The 46th U.S. presidential election in 2020 will result in Joe Biden’s victory. At present, US President Donald Trump is claiming election manipulation and is dissatisfied with the election, but it seems very unlikely that the results of the presidential election will be overturned by trial. Therefore, we should anticipate Biden as the next president and analyze how he will affect the beauty industry.
He made these remarks in his speech at the Wilmington Chase Center in Delaware, on Nov. 8th.
“There will be no more red or blue states. We are United States. There is a time to grow something, a time to harvest, and a time to sow. Now is the time to heal America.”
As if conscious of this presidential election, which was fiercer and divided than ever, Biden emphasized “returning to the normal state” in his speech. He is going to become a president who heals the US that has been divided from the COVID-19 pandemic. How will his declaration of healing affect the beauty industry?
Biden “Eradication of COVID-19 is the first task as the president-elect”
The direct reason behind the suffering of retail stores across the United States is probably the COVID crisis. According to data released by The Washington Post in July, a total of 25,000 retail stores have closed for about nine months from the outbreak of the coronavirus. Now, some time after the corona crisis, sales have recovered to some extent compared to the beginning of the crisis, but retail store owners say that there is still a long way to go.
Biden said, as the elect, the first task to be solved is the fight against COVID-19. He said in his last presidential debate that because President Trump neglected 220,000 deaths due to the virus, he is not eligible as president. Biden also promised more free COVID tests and widespread quarantine measures when he gets elected.
“It makes no sense for someone who has caused so many deaths to continue to be president of the United States. This is the result of Trump’s obsession to the economy and lightly viewing the coronavirus. If he took the lead in wearing a mask, 100,000 more would have survived.”
The COVID measures announced by Biden’s election camp on October 28 are as follows.
1. Establish guidelines to slow the spread of viruses in the community
Certain conditions for opening all public institutions, including schools, are likely to be added. Officials say Biden will impose restrictions on the size of the meeting or the length of stay. They also say that Biden will work with all governors to make masks mandatory.
2. Extensively conducted free corona test
Biden’s election camp declared that “all Americans will be given regular and reliable free tests.” It also said it will double the number of drive-through tests and expand investment in new test methods, including instant tests.
3. Increase number of health workers
To do this, people working for disinfection and quarantine are needed. Biden said that he will not only increase the number of tests nationwide by expanding 100,000 health workers, but will also establish a confirmed case tracking system through collaboration with organizations across the country.
4. Large investment in vaccine development and personal protective equipment
Biden’s election camp said it would meet the current governors’ demand for funding for vaccine distribution and development. He said he is estimating about $25 billion for the plan, all of which will be paid by the government.
Unlike the Trump administration, which freed up economic activity, Biden will enforce strict rules on disease, but the government’s investment in treatment and prevention is likely to increase.
Protests likely to happen less than during the Trump administration
In June, when all were struggling due to COVID-19, the hair industry suffered again by the Black live matter protests. Some protests turned to riots, leading to plundering of numerous retail stores. Tensions intensified before and after the presidential election, and many retailers were worried that the riot would recur.
Fortunately, after candidate Biden is elected, the industry has eased worries about the riots. This is because Biden, who is relatively sensitive to racial discrimination, is more popular with black people than President Trump, so the risk of riots is reduced. In fact, there is no precedent for a massive black protests when the Democratic President came to power.
Of course, there are signs of armed conflict between Trump supporters and Biden supporters in Washington D.C. right now. As predicted by the US police in the presidential war, complaints from Trump’s camp who lost the election are pouring into the streets. Moreover, President Trump is encouraging their excitement by saying that this election is a fraud. If this situation calms down, there will be stability, but local retailers need to be careful until it does.
Increased tax for income earners with an annual income of over $400,000, tax reduction and government support for others
Tax increase for the rich is predicted. “Rich companies” will pay more corporate tax and small businesses will pay lower taxes. Since retail stores average $70,000 annually, there is a high probability that they will get tax benefits. Biden, who pledged to raise the corporate tax rate from 21% to 28%, made sure to apply this standard to large corporations that file corporate tax returns over a certain amount, not retail stores or small and medium-sized businesses.
Not only rich companies, but also individual rich people will not be able to avoid the tax increase. According to Biden’s tax pledge, the highest personal income tax rate for people with annual incomes of $400,000 or more will be raised from 37% to 39.6%. When his pledges come true, about four trillion dollars of taxes will be paid. Biden pledged that the extra money collected from high-income and large corporations would be spent on social overhead capital and support for the middle class. “We will use specific incentives, additional resources and new financial budgets to drive policies that focus on small businesses and vulnerable groups,” he said.
Unemployment benefits and subsidies for low-income people?
Biden’s election camp has not yet made a specific proposal, but if you take a look at Biden’s comments so far, it seems that the Democratic Party will maintain its position on the corona subsidy and plan a subsidy that focuses more on the low-income class.
Biden publicly denounced the requirement to pay the first PPP at an election campaign in Delaware in early September.
“In spite of the collapse of tens of thousands of retail stores and SMEs, the first PPP subsidy was paid on impractical terms. Since these moneys were not focused on saving small businesses, many businesses had to close. Government support should be focused on businesses that need real help, especially those affected by the riots.”
Democrats and Biden have expressed their opinion to focus more money on low-income groups. At the end of September, Democratic House Speaker Pelosi issued a $2 trillion corona subsidy policy, twice as much as the Republican Party’s existing proposal, and insisted that more power be given to support the low-income class.
The bill included subsidies for retail stores, airlines and public sectors at risk from the coronavirus, $1,200 per taxpayer, $500 cash payment per dependent, and $600 unemployment benefit per week. It is also reported to include a $435 billion budget support for local governments and a 15% increase in food stamp benefits.
Of course, given the current Senate parliamentary structure, with a majority of Republicans, it seems almost impossible for the Democratic Party’s bill to pass, but with this trend, it seems clear that under Biden’s administration, government-initiated support for low-income groups will increase.
The Biden Administration Continues to “Strike China”
This is an issue of interest to companies that do business with Chinese companies and factories. Some exporters are hoping that trade with China will improve again under the Biden administration, but unfortunately (?) Biden’s trade policy with China does not seem to differ much from that of the Trump administration. Biden, who has long served as a Senate member of the Foreign Relations Committee, sees China as an enemy of the United States, just like Trump.
Biden has mentioned several times in his speeches and interviews that prioritizing America economically, and the striking against China resulting from it will continue. In the last presidential debate, when asked about the trade war, he said, “We are making a new policy to crack down on China’s economic advantage.” He also said he would severely punish Chinese companies that cause currency manipulation or other unfair trade.
In his book of pledges on trade in China, the human rights issue against the Uighurs is also specified. Experts analyzed that based on the content, Biden would not just watch the Uighur political prison camps and other human rights crimes committed by China like the Trump administration did.