Last Two Presidents Impact on the Economy -Briefly

I am not going to put the entire detail of the Economic Impact under both presidents up at Angry Bear. It is just too much. You can read it at the link. Snippets of information are below. MSN does not provide the charts which are in the WaPo’s article. If you have a subscription, you may want to look at it. What I have here is much of the wording of the article along with some my thoughts.

Biden’s economy vs. Trump’s, in 12 charts( Abha Bhattarai. As taken from The Washington Post.

Job gains: The strong labor market is this (Biden’s) White House’s biggest victory. In some ways, the bump was inevitable . . .

Unemployment rate: Aside from a covid-fueled surge in much of 2020 and 2021, the national unemployment rate has remained low through both Biden and trump’s presidencies.

Economic growth: The U.S. economy has expanded at a steady pace under both Trump and Biden. Gross domestic product grew 22 percent since Biden took office as compared to a 14 percent uptick during Trump.

Gas prices: Presidents have very little control over gas prices. You need to read this one at the link. I tend to think much of this is supply and demand impacted by variable refining. RJS usually has a good take on this.

Home prices: A lot of rent-taking by builders. I have seen it in AZ. People selling homes in more expensive areas (California) come to lower priced places and outbid others by tens of thousands. We would bid ten thousand over and still be outbid. Corporate influence and banks have an impact. Read the article also.

Inflation: Pandemic influenced inflation due to fewer goods on the market had an impact. Also . . . The president has little power over Fed and bank set interest rates. While the Federal Reserve’s chair and governors are appointed by the president and confirmed by Congress, the central bank operates independently.

Interest rates: Pandemic influenced inflation due to fewer goods on the market had an impact. Again . . . The president has little power over Fed and bank set interest rates. Although jawboning does have an impact.

Disposable income: Americans have less spending power than they did at the beginning of Biden’s term. A drop-off in stimulus money, plus rising prices, have caused large swings in household income since 2020. Much of this is due to the elimination of financial aid during the pandemic. With decreases in energy costs, this may help.

Stock market: The stock market rose rapidly during Trump’s presidency and has continued its ascent under Biden. 

Student loan debt: Outstanding student loan balances have been climbing for nearly two decades And now? Biden took office vowing to whittle down the debt burden on student and graduates. $132 billion forgiven. And Republicans have fought against such relief. Maybe voters will remember both parties and who did what.

Consumer sentiment: Despite the economy’s strength, Americans appear downright despondent when it comes to their finances during Biden’s tenure. Consumer sentiment dropped to its lowest level, ever, in June 2022, when gas prices were at a record high. That should be improving now.

Federal deficit: The federal deficit peaked under Trump, though both he and Biden have added trillions to the national debt. The tax break under trump has caused much of the national debt under Biden.