With Donald Trump’s tumultuous reign having now come to an end in the US, new President Biden has adopted a more unifying tone in stark contrast with his predecessor’s scorched earth approach to governance.
This is best evidenced by Biden’s ‘American Rescue Plan Act of 2021’, which is effectively a Covid-19 stimulus package that amounts to a staggering $1.9 trillion.
In this post, we’ll take a brief look at Biden’s rescue plan act and its likely impact on the US economy, while asking which strategies businesses can deploy to capitalise in the legislation.
America’s Rescue Plan Act and its Economic Impact
At the core of Biden’s plan is the idea of reciprocity, which is based on the notion that creating an economic stimulus will result in a significant reinvestment into national products and services.
For example, a key element of Biden’s plan is the distribution of so-called stimulus cheques worth approximately $1,400 to every American citizen.
This could translate into a huge boost for households that have been directly impacted by the coronavirus, while creating a scenario where a proportion of the funds would be spent on goods and services produced both domestically and overseas.
This also highlights the global nature of Biden’s plan and its potential impact across the globe, as US customers begin to spend more on imported goods and drive more widespread economic growth (and improved sentiment).
As a result, Oanda trading platform predicts that there will be a significant boost to global trade, with Biden’s plan lighting the blue touch paper and initiating widespread growth across a wide range of market sectors.
This is borne out by various metrics, not least the fact that UBS bank raised China’s GDP call to 9% on the back of increased American import demand. Elsewhere, the OECD has revised its global GDP growth forecast from 4.2% to 5.6%, which is much-needed in the wake of the coronavirus pandemic
The Best Strategies for Growing Your Company’s Capital
As the economic climate improves, businesses will be looking to capitalise on Biden’s plan and boost their short and long-term capital. But what steps can be taken to achieve this objective?
- Focus on Established Revenue Sources: It’s at least five-times cheaper to retain existing customers than acquire new ones, so this should be a core focus as you look to scale quickly and boost capital in the wake of Biden’s plan. You could do this by implementing a referral or revamped customer loyalty program, or utilising marketing strategies based on past purchasing behaviours.
- Get Recruitment Right: If we are about to see a burst of economic growth, you may want to consider ensuring that you have the right team in place to pursue aggressive, short-term growth plans. This means hiring the right people and creating a team with the requisite strengths and attributes, even if this means employing contracted staff members on the basis of each individual project. If you want to deals direct, you have to visit this site.
- Reduce Your Risks: Even though Biden’s plan will stimulate wider growth across the globe, risk levels remain high as the coronavirus continues to spawn new and potentially dangerous variants. So, it’s important to approach with caution and manage risks that are within your immediate control, from investing in renewed business insurance (where applicable) to adjusting your total budgets across a range of disciplines.