The change in the US presidency has happened for the better. I am not here to give my political opinion, but I think Joe Biden will do a better job than Trump has. Okay! Now coming back to the main focus of the article, let’s talk about the transition in US industries that we might see in the near future. A few days back, I covered an article covering how Donald and Biden will have a very different impact on many industries. But, now Donald’s views don’t matter, so here are the changes Biden promised and might bring very soon.
Cannabis
Let’s start with the most controversial topic in today’s discussion. Biden has never been against cannabis and has actually been working for its federal legalization. This is a great thing for marijuana companies because we can see them expect credit cards and even get loans from banks. We might also see Biden pass an Act that will remove marijuana from the list of illegal substances. There is also a chance of removal of the Tax Code 280 E, which will help cannabis business companies thrive and turn losses to profits. Cannabis is one of the US industries that will see a huge benefit from Biden’s win.
Automotives and Airlines
With Biden becoming president electric car companies might see huge benefits. This will be because of the higher tax credits that consumers can enjoy if they buy an electric vehicle. This is a great thing for the already flourishing business of electric car manufacturers like Tesla and General Motors. On the other hand, fuel-based car manufacturing companies might face problems because of stricter emission policies.
Now for Airlines Biden’s win might not be a great thing. This is because of the tighter regulations that they might have to follow. From stricter policies favouring consumers to the forever debate on seat space, there might be many changes. Biden, who is also hugely in favour of renewable transmission fuels might also introduce rules to monitor carbon transmissions of airlines heavily.
Casinos
Trump was not even convinced that covid is a real threat and how important social distancing is. But Biden is a complete opposite to him regarding this matter. So, even though his ties and favour for Casinos are good for the industry, if COVID cases don’t go down, there is a chance all the casinos will be under lockdown. But, once everything becomes normal, we might see an infusion of funds towards the industry. It is clear at this point that Biden is not against gambling and online sports betting.
Manufacturers and Retailers
It is up to Biden if he can rebuild the deteriorating relation that Donald has caused. We might see Biden work on the relationship they have on China and ease trade relations and restriction of Chinese companies. If this happens then, US companies like Tesla and General Electric that have a huge market in China might also see good improvement in business. But an important thing to remember is that under Donald Trump, the corporate taxes were 20% which Biden plans to increase to 28%. So, for the manufacturing industry, the win of Biden has both positives and negatives.
Retailers might see a huge problem because, under Biden’s presidency, there is a greater chance of stores closing that sell non-essential items. Plus, Biden also talked about how he wants to increase the minimum hourly wage to $15, which might result in less profit in retail stores.
Restaurants
With the COVID cases rising in the US, the closing of restaurants is very probable. And the increase in the minimum hourly wage from $7.25 to $15 might really hurt many restaurants. According to a report in 2019, labour wages of restaurants accounted for about 31% of its total operational costs. This means a further increase might reduce profits and even push some to losses too. But, we can expect Biden to bring new policies and funds that might help restaurants to thrive in this difficult situation.
Health Insurance and Medical Technology
One of the most important US industries or any countries for that matter is Health Insurance and MedTech. For private health insurance companies, Bidens win is a sigh of relief because he doesn’t plan to replace them but offer cheaper alternatives to US citizens. The new US president also plans to increase testing to help in scaling down the effect of the pandemic. Apart from that, Biden also plans to invest in improving medical technology and have reserves of medical items in case of any form of emergency.
Apple, Amazon and Google
Tech Companies are going to see a better time ahead in Biden’s rule. Let’s take a look at what all might change for them starting with Apple. Apple is largely dependent on China for its manufacturing and parts, but the US-China trade war has created many problems for the brand. Trump’s policy to allow less foreign engineers to work for the brand might also be reversed under Biden’s government.
Now for Google, the situation is not very clear. Because there have been rumours that a new law might be passed that will make the company having to monitor anything on the internet posted through its platform. This means Biden might hold companies responsible for any content posted by any user and revoke the Section 230 law protecting them from it.
For Amazon, the situation is a little better. The company won’t have to be a victim of Donald’s baseless accusations all the time. If Donald had been elected, there could have been serious consequences for the company. It might also have faced restrictions on its operations.
Hollywood
The Film Industry in the US has been suffering a lot due to the pandemic. And the election of the new president might not change a lot of things for the industry. But, yes Biden did say he plans to help industries that have been facing problems in operations due to the pandemic. He also plans to provide necessary funds to bring Hollywood back in track but until COVID issues get resolved these things are not viable.
Social Media
Facebook and Twitter will see a lot of changes with Biden’s presidency. First of all, the inner tension between these two companies will be reduced. This is because Trump has posted many controversial things on their platform in the past, which caused many issues for the companies. Though, most of the things may email constant Biden might introduce rules to have a clean Social media free from politics and activists clips.
Renewable Energy
Donald was stupid for saying that hew prefers fossil fuels over renewable sources of energy. But Biden is very much in favour of renewable sources of energy. And plans to invest a huge amount of funds in transitioning the entire nation from fossil fuels to renewable sources of energy. There might be many news laws and restrictions imposed on companies for the carbon footprint they have. This, as a result, can increase prices of fossil fuels.
Metal industry
Metal US industries are going to see huge benefits in Biden’s governance. This is due to the fact that the increase in the usage of Renewable sources of energy might increase the demand for copper and other industrial metals. At the same time, the Steel and Aluminium industry doesn’t have much to gain from Biden at least for now. This is because there is no immediate signal from Biden to reduce the imposed tariffs by Donald.
Do you think Joe Biden will be a better president as compared to trump? And will there be a positive impact on the US industries? Do Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: How different Industries will react if Joe Biden is elected vs Donald Trump?
