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CNBC’s Ron Insana pointed out the reality of the Trump vs. the Biden economy, which Trump would rather you not know.
Biden’s economy laid waste to Trump’s.
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The narrative surrounding Donald Trump‘s presidency has been, in large part, one of distortion. While many continue to credit Trump with a booming economy, the reality paints a far more nuanced and inconvenient picture. Trump inherited a steady and robust economy from his predecessor, Barack Obama, and contrary to his claims of revitalization and reinvention, his administration merely coasted on Obama’s coattails until it crashed amid the COVID-19 pandemic. It was then left to Joe Biden to clean up the wreckage, reviving the economy and driving it to new heights through progressive legislation and far-reaching reforms.
Ron Insana’s observation perfectly captures the core of the argument: Biden’s economy far surpasses Trump’s, yet he has not received the credit he deserves. For years, Republicans have capitalized on the image of their party as the vanguard of economic growth, and Trump is no exception. However, a closer look at the data reveals that the Trump economy, at best, paralleled Obama’s—and at worst, exacerbated income inequality and left the nation unprepared for inevitable economic shocks like the pandemic.
Obama’s Economy: Laying the Foundation
To understand the difference in economic stewardship between Obama, Trump, and Biden, one must first look at the condition of the economy when Obama took office. Obama inherited the worst financial crisis since the Great Depression. The economy was bleeding millions of jobs, home foreclosures were at an all-time high, and the financial system teetered on collapse. The Bush administration had left behind a legacy of deregulation and reckless fiscal policies that triggered the economic 2008 collapse.
Through a combination of stimulus packages, strategic bailouts, and progressive reforms like the Affordable Care Act (ACA), Obama managed to stabilize the economy. By the time he left office, unemployment had dropped from its crisis peak of 10% in 2009 to 4.7% in 2016. GDP growth had returned to a steady pace, and the country experienced 75 consecutive months of job growth—a historic streak. The auto industry, on the brink of collapse, had been rescued, and key industries were starting to thrive again. In essence, Obama’s administration built the economic foundation on which Trump would later stand.
Trump’s Economy: Riding Obama’s Coattails
Trump’s presidency, in economic terms, benefited enormously from the stable growth trajectory Obama set in motion. The unemployment rate continued to drop during Trump’s first three years, but the pace of job creation remained almost identical to the last three years of the Obama presidency. According to the Bureau of Labor Statistics, job growth during Trump’s first three years averaged about 182,000 per month—barely distinguishable from Obama’s average of 224,000 jobs during the previous three years.
The story of GDP growth remains similar. While Trump promised an explosion of growth thanks to his tax cuts, the GDP growth rate during his first three years never crossed 3%, sticking close to Obama’s last years in office. Even worse, his tax cuts disproportionately benefited the wealthy and blew a hole in the federal deficit, exacerbating income inequality and leaving the economy vulnerable.
The COVID-19 Pandemic: Exposing the Fault Lines
While Trump was able to ride the momentum of the Obama recovery for a time, his economic management was exposed as ineffective and chaotic when the COVID-19 pandemic hit. Instead of enacting swift and coordinated measures to contain the virus and protect the economy, Trump downplayed the crisis, leading to widespread economic shutdowns. The unemployment rate soared to 14.7% in April 2020, erasing nearly all the gains made under his administration and Obama’s. GDP contracted by an unprecedented 31.4% in the second quarter of 2020, throwing millions into financial despair. Trump’s failure to respond effectively left the incoming Biden administration with an enormous challenge.
Biden’s Economy: Building Back Better
Joe Biden inherited an economy in shambles, with high unemployment and businesses nationwide struggling to reopen. His administration, however, took swift action through the American Rescue Plan. This $1.9 trillion stimulus package delivered direct payments to Americans, extended unemployment benefits, and provided essential funding for small businesses. This bold and progressive action immediately put the country on a faster path to recovery. The unemployment rate fell to 3.5% by July 2022, and the economy added millions of jobs, with total job growth outpacing even Obama’s post-recession numbers.
Furthermore, Biden’s administration has enacted far-reaching legislation like the CHIPS and Science Act and the Inflation Reduction Act to bolster American manufacturing, strengthen supply chains, and address climate change—all while keeping inflation in check. As noted in the transcript, inflation dropped from its peak, and growth in sectors like manufacturing has exceeded expectations. The CHIPS legislation, for instance, aims to bring semiconductor production back to the U.S., reducing dependence on foreign production and creating tens of thousands of well-paying jobs.
Despite these successes, Biden has not received the credit he deserves. According to polling, many voters still incorrectly associate Republicans with stronger economic leadership. This misconception is partly driven by persistent media narratives and Republican messaging portraying Biden’s policies as inflationary or ineffective despite clear evidence. It is a proven fact that the economy does better under Democratic Presidents than under Republicans.
Conclusion: Biden’s Legacy Outshines Trump’s
While Trump may continue to claim economic victories, the facts reveal a different story. Trump’s economy was largely a continuation of the Obama years, and Biden ultimately rescued the country from the economic ravages of the pandemic. Progressive policies, smart investments in the future, and a clear commitment to economic fairness define Biden’s economic legacy—one that far outshines Trump’s hollow claims of success. As more Americans begin to see the tangible benefits of Biden’s policies, the narrative will likely shift, and Biden’s economic achievements will take their rightful place in history.
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