Ever since President Joe Biden came into office, he has passed many orders to improve the US economy. One of his recent issuances is Executive Order 14036. It was passed on 9 July 2021 and is intended to promote competition in business sectors.
Biden believes without competition, companies exploit customers by overcharging. That is why he signed the order. But, before we dive into the details, let’s discuss what an executive order is.
Executive Order: Introduction
An executive order is a written document that the President of the US signs. It provides directives that must be implemented. Executive Order 14036 uses authoritative and soft language for guiding federal agencies.
What Sectors Are Being Targeted By The Order?
The order has listed about 72 initiatives for several agencies. Below are the main target sectors.
- Labor
Key Points
- The President has encouraged FTC to limit or ban the signing of non-compete agreements. These agreements prevent workers from leaving their jobs to work at a rival company.
- Biden has also emphasized the need for a ban on unnecessary occupational licensing requirements.
Reason for Change
While drafting the Fact Sheet, the White House found that 36 to 60 million workers sign non-compete agreements every year. Many believe that the employers misuse these agreements to reduce wages. That is because the employee cannot take a job that pays better.
So, the administration believes this change will help in increasing wages. It will also allow people in poor working environments to change jobs easily.
2. Healthcare
Key Points
- The White House asked the HHS to issue a plan in 45 days to combat the rise in drug prices.
- It has also encouraged FDA to import drugs from Canada to solve pricing problem.
- FDA will also be implementing rules allowing the sale of hearing aids over the counter.
Reason for Change
Biden highlighted the fact the drug market is controlled mainly by few companies. That is why they have they charge the amount that suits them. Due to this, US citizens pay at least 2.5 times more for prescriptions drugs.
2. Tech Companies
Key Points
- The order calls for FTC and DOJ to strengthen antitrust rules.
- It directs the FTC to implement new rules regarding surveillance and data collections.
Reason for Change
The administration has cited that existing guideline puts workers at risk. That is because employers can share wage data without facing antitrust scrutiny. It also highlighted the fact that large tech companies have too much power.
Biden aims to lower down the number of killer acquisitions by this directive. At the same time, new rules will offer small companies a chance to thrive.
Final Words
These are some of the points highlighted in the document. If you wish to learn more, here is the complete fact sheet released by the White House. Executive Order 14036 is aimed at improving the economy while keeping the citizens happy.
Some people are skeptical and believe the changes will worsen the economy. However, only time will tell whether these changes will have a positive impact.