From Vaccine Procurement to the Defense Production Act... Biden Declares 'War-Time Situation'

The Fate of the Administration Hinges on Conquering COVID-19
Promise of 100 Million Doses Within 100 Days of Inauguration
Analysis Suggests Securing Sufficient Supply Is Impossible
Questions Arise Over Potential Additional Fiscal Stimulus

[Image source=EPA Yonhap News]

[Asia Economy Reporter Cho Hyun-ui] On the 21st (local time), the second day of his inauguration, U.S. President Joe Biden focused most on responding to the novel coronavirus infection (COVID-19). On this day, President Biden signed 10 executive orders related to COVID-19 at the White House. He emphasized the seriousness by saying, "The cumulative death toll in the U.S. could exceed 500,000 next month," and "This executive order is a wartime business." He also stated, while invoking the Defense Production Act (DPA), "We are on Day 1."

◆The fate of the administration depends on COVID-19= Especially, the executive orders included stringent COVID-19 measures such as quarantine for overseas arrivals. This is interpreted as the administration staking its fate on conquering COVID-19 while erasing the Trump administration's legacy. Since the spread of COVID-19 in the U.S. has not slowed, how President Biden responds to COVID-19 is expected to determine the new administration's first report card.

President Biden has promised 100 million vaccine doses within his first 100 days in office. However, some have criticized this as being overly cautious. The Trump administration, which aimed to vaccinate 20 million people by the end of last year, failed to meet this goal due to vaccine shortages but as of this day, 17,546,374 people have been vaccinated.

◆Mobilizing the Defense Production Act= The Biden administration is currently reviewing ways to expand supply and speed up distribution by utilizing federal funds and the DPA. However, some health officials and industry experts predict that given current vaccine production capacity, it will not be possible to suddenly increase supply before April, when the 100-day mark is reached, according to The New York Times.

It is also analyzed that the Biden administration's mention of the Trump administration's lack of a COVID-19 strategy on this day was conscious of this situation. A Biden administration official said, according to CNN, "We inherited no substantial COVID-19 vaccine distribution plan from the Trump administration." Another official said that the Trump administration's COVID-19 response measures were unusable even with fixes and that everything must be started anew.

[Image source=Reuters Yonhap News]

Since a considerable number of people have already received their first dose, some voices suggest that President Biden set the vaccination target somewhat low. Dr. Scott Gottlieb, former FDA commissioner under the Trump administration, explained to The New York Times, "We can vaccinate 100 million doses or more within the first 100 days," adding, "With Pfizer and Moderna vaccines having received emergency approval and Johnson & Johnson's vaccine expected to be approved next month, there is sufficient supply."

However, President Biden expressed reluctance to such criticism. At a COVID-19 related press conference held at the White House on this day, when asked if the vaccination target should be raised, he said, "When I promised 100 million doses within the first 100 days, everyone said it was impossible," and added, "Give me a break."

◆Economic stimulus faces obstacles= Meanwhile, questions are being raised about the success potential of the Biden administration's proposed additional fiscal stimulus package worth $1.9 trillion (approximately 2,090 trillion won). The additional stimulus package includes direct payments of $1,400 per household, an additional $400 weekly unemployment benefit until September, and raising the minimum wage to $15 per hour. The direct payments to the public total $2,000 when combined with the $600 per person specified in the stimulus package passed at the end of last year.

However, some moderate Republicans and parts of the Democratic Party have expressed negative views, raising the possibility of reductions. According to Bloomberg News, Republican Senator Mitt Romney said, "We just passed a program worth over $900 billion," drawing a line. Democratic Senator Joe Manchin recently stated in a media interview that he does not support direct payments of $2,000 per person. However, since the $2,000 direct payment amount was proposed by former President Trump, there is speculation that there may be room for compromise.