As the 2024 presidential election approaches, the state of the U.S. economy is a key concern for many Americans. Former President Donald Trump boasts about his economic record, pointing to low mortgage rates and a strong economy during his tenure. However, a closer look at the economic numbers reveals a more complex reality. Trump’s tax cuts did not lead to the promised growth, and his budget deficits increased significantly. Despite his claims, the pandemic caused historic job losses for which Trump takes no responsibility.
While an April survey found that Americans believe Trump was better at creating jobs and controlling the cost of living, the economic growth during his presidency was lackluster. Excluding the pandemic-induced recession, growth under Trump averaged 2.67%, dropping to 1.45% when considering the recession. In comparison, growth during former President Barack Obama’s second term was slightly higher at 2.33%. Under President Joe Biden, annual growth is currently averaging 3.4%.
Trump’s tax cuts, which favored corporations and the wealthy, did not lead to deficit reduction as promised. The deficits increased significantly under Trump’s administration and continued to remain high under Biden due to the pandemic aid and other initiatives. Inflation remained low during Trump’s presidency, largely due to factors such as the 2008 financial crisis and the Federal Reserve’s actions. However, inflation has been rising under Biden, currently at 3.4%.
The U.S. lost 2.7 million jobs during Trump’s presidency, with job gains only occurring when excluding pandemic months. In contrast, Biden’s presidency has seen the addition of 15.4 million jobs, exceeding forecasts. Both candidates have focused on bringing back manufacturing jobs, with Trump adding 461,000 jobs before the pandemic. Biden has added 773,000 manufacturing jobs so far during his presidency, indicating some progress in this area.
As the election approaches, the state of the U.S. economy remains a critical issue for voters. While Trump may tout his economic achievements, the reality is more nuanced. His tax cuts did not lead to significant growth, deficits increased, and job losses occurred during the pandemic. Biden, on the other hand, has overseen stronger job growth and implemented initiatives to address economic challenges. Ultimately, voters will have to assess which candidate they believe can best navigate the complex economic landscape in the years ahead.
