The Biden Presidency And The Economy: What You Need To Know Now

Plus: Biden Plans These 5 Executive Orders

The president-elect has plans for everything from Covid-19 to taxes to the minimum wage. How much he gets done likely depends on control of the Senate.

Business leaders breathed a sigh of relief over the weekend as it became clear that Joseph R. Biden Jr. would be the nation’s 46th President, while Senate control (to be determined by two January Georgia runoffs) is likely to remain with Republicans, blocking Democrats' left-leaning big plans. “This is great for American competitiveness,’’ Box CEO Aaron Levie wrote on Twitter, adding that businesses need stability and “global trade relations that don’t change on a whim.”

Of course, Biden can do a lot on his own through both executive orders and regulatory policy on everything from the environment to worker and consumer protection. His team is already preparing a list of day one actions—ranging from rejoining the Paris climate accord to restoring protection for “Dreamers”—that will reverse some of President Trump’s moves. But Biden can’t raise taxes on corporations and the wealthy or spend trillions on stimulus or green infrastructure without both houses of Congress being on board. 

Covid-19

On Monday, Biden announced a task force to put his Covid-19 plan into effect, a group that will be co-chaired by former FDA commissioner David Kessler, Dr. Marcella Nunez-Smith, Associate Professor of Internal Medicine, Public Health, and Management at Yale and former U.S. Surgeon General Vivek Murthy. The President-elect’s transition website has also posted the future Administration’s plans, which is centered around the mantra “Listen to science.” 

Nationwide Mask Mandate?

A recent analysis by researchers at Vanderbilt University found that areas with mask mandates have lower hospitalization rates from Covid-19 than areas that don’t. And a Goldman Sachs estimate over the summer suggested a mask mandate would save the economy over $1 trillion. Will there be a nation-wide mask mandate?

What To Read:

Trump Applauds Pfizer Vaccine News, While Biden Expresses Cautious Optimism

Biden’s New Covid-19 Task Force To Meet As U.S. Approaches 10 Million Cases

Mask Mandate Hits Utah

Pfizer Says Covid-19 Vaccine Is 90% Effective, Although Trials Are Ongoing

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Personal Finance

Will The Federal Minimum Hourly Wage Increase To $15/hr?

President-elect Joe Biden made some very ambitious labor-related promises on the campaign trail. His ability to deliver on those promises may be closely tied to how soon he wants to do it, and if the US Senate is still in Republican hands by the time he is sworn into office. With Democrats still in control of the House in the new Congress, Biden’s legislative scorecard—including his ability to raise the federal minimum wage to $15/hr—will likely depend heavily on the outcome of the January 5 runoff elections for Georgia’s two seats in the US Senate.

What To Read:

5 Ways Your Student Loans May Change Under President Biden

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Investing

Despite the risks associated with contested election results and the impact of rising coronavirus cases on economic data, expect stocks to be higher at the end of the year, says Lindsey Bell, a chief investment strategist for Ally Invest, adding that, "November and December are typically the two best months for stocks, even in election years."

Billionaire hedge fund manager Leon Cooperman, the longtime chairman and CEO of now-defunct investment advisory Omega Advisors, isn’t bullish on the economy's long-term outlook, but the short-term should be favorable for stocks—even if election results are challenged, he said on CNBC Friday.

What To Watch For

The 2020 holiday season. Retail sales were an unexpected economic boon in September, and Morgan Stanley says it expects similar traction in October as retailers pushed to start the holidays early and amid gains in labor income, but the firm also expects that a "difficult winter [with] rising Covid-19 cases" could slow down spending in the weeks to come.

What To Read:

What Does Biden-Harris Mean For The Economy?

5 Ways Holiday Shopping Will Be Different In 2020

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Retirement

A close look at the Democratic platform draft as well as Biden's website and interviews with analysts suggests that Biden wants to tackle several major challenges confronting those in the second half of life. It lays out the kind of policy framework President Obama had, but several initiatives take it a step farther — perhaps an additional two to three steps.

What To Read:

What Biden's Plans Would Mean For Social Security Solvency

Joe Biden Promises To End Traditional 401(k)-Style Retirement Savings Tax Benefits. What’s That Mean?

IRS Announces 2021 Retirement Plan Contribution Limits For 401(k)s And More

Across Forbes