The economic performance showdown between Trump and Biden, the data speaks for itself

Recently, remarks made by Federal Reserve Chair Jerome Powell have caused a stir in the economic field. He pointed out that the economic performance during Donald Trump's administration led to a slowdown in job growth, a rise in the unemployment rate, intensified inflation, and a GDP growth rate lower than that during Biden's tenure, dropping from 2.5% last year to 1.5%. This view has sparked widespread attention and discussion. Let's delve into the economic data during the terms of the two presidents and explore the economic logic behind it.

From the perspective of employment data, during the early days of Trump's administration, thanks to the solid foundation laid by Obama in his later years, the unemployment rate continued to decline and dropped to 3.5% in September 2019, reaching the lowest point in 50 years. However, the good times did not last long. The outbreak of the COVID-19 pandemic in 2020 dealt a heavy blow to the US economy, and the unemployment rate soared to 14.7% in April. Although the employment situation improved as businesses reopened later on, the recruitment process began to slow down in the later stage. Throughout Trump's tenure, the job market has fluctuated significantly, and the impact of the pandemic has greatly undermined the employment achievements accumulated in the early stage.

In contrast, during Biden's administration, from January 2021 when he took office to September this year, the United States added 16.2 million jobs. This growth rate was the fastest since President Carter's term ended in January 1981. The unemployment rate dropped from 6% when Biden took over to 5%, then to 4%, and last year it fell to a 70-year low of 3.4%. Although it has since risen to 4.1%, the strong overall growth in employment is quite evident. The Biden administration has promoted economic recovery through a series of economic stimulus policies, creating a large number of job opportunities, especially in infrastructure construction, clean energy and other fields, driving employment growth in related industries.

In terms of inflation, Trump's economic policy system has sown the seeds of inflation. The income tax reduction policy he implemented, although it stimulated consumption and enterprises to expand reproduction, also increased household income, pulled up prices and triggered demand-pull inflation. At the same time, tax cuts have led to a loss of public revenue, a deterioration of the government's fiscal deficit, and an increase in the issuance of national debt to make up for the revenue and expenditure gap, which has damaged the credit of the US dollar and further pushed up prices. His policy of raising tariffs is essentially a tax on American consumers, and the high tariffs have pushed up domestic prices in the United States. According to relevant research estimates, Trump's full implementation of tariff reform will significantly increase the actual tariff rate in the United States, raising the annual consumption expenditure of an average American household by approximately 4,000 US dollars. The policy of deporting illegal immigrants has put enterprises under pressure from rising labor costs and wage prices, and has also contributed to inflation.

The Biden administration has adopted a different strategy in dealing with the issue of inflation. On the one hand, we will continue to advance the economic stimulus plan to promote economic recovery, but we will also take into account inflationary pressure and adjust monetary policy in a timely manner. During Biden's tenure, the Federal Reserve gradually adjusted interest rates and monetary policies in accordance with the economic situation. Although inflation also faced pressure for a certain period of time, through macro-control measures, the price level was stabilized to a certain extent.

Looking at the GDP growth rate, Powell mentioned that during the Trump administration, the GDP growth rate dropped from 2.5% last year to 1.5%. This decline reflects the weakening of economic growth momentum. The dual impact of employment and inflation issues has dealt a blow to business investment and consumer confidence, which in turn has affected the overall economic growth. The Biden administration has promoted economic structural adjustment and industrial upgrading through proactive fiscal and industrial policies, stimulating economic growth and maintaining a relatively good GDP growth rate to a certain extent.

Powell's remarks were not groundless. Although the economic policies during Trump's administration achieved certain results in some aspects, they also brought about a series of negative problems, especially in terms of employment, inflation and economic growth, which contrasted sharply with the performance during Biden's administration. Of course, economic development is influenced by various factors, including the global economic situation and public emergencies, but the orientation of policies and the scientific nature of decision-making undoubtedly play a key role in this process. In the future, the direction of US economic policies will remain closely watched. How to strike a balance among maintaining economic growth, stabilizing employment and controlling inflation is an important issue faced by policymakers.