Policies

Trump Economy Vs Obama Economy

An analysis shows that median household income increased under Trump's economic policies, along with other improvements
Donald Trump Standing At Podium At Trump Rally

Karl W. Smith, former vice president at the Tax Foundation and an assistant professor of economics at the University of North Carolina, used his Bloomberg opinion column to explain how the economy improved under Trump. Of course, the column didn’t get mainstream media attention prior to the election.

As Smith wrote, not only did unemployment drop and economic growth increase beyond what experts said was possible, but median household income rose far above what it had been for the past few decades.

“In 2016, real median household income was $62,898, just $257 above its level in 1999. Over the next three years it grew almost $6,000, to $68,703. That’s perhaps why, despite the pandemic, 56% of U.S. voters polled last month said their families were better off today than they were four years ago,” Smith wrote.

“The key to that number is the breadth of Trump’s expansionary agenda. Republican presidents have typically focused on tax cuts, particularly for businesses, with the idea that they will encourage an increase in investment and wages. Democrats have tended to seek spending increases, often with the hope that they will stimulate the overall economy and increase job growth. Presidents of both parties have traditionally left interest-rate policy to the Fed,” Smith continued.

“Trump broke the mold by aggressively battling on all three fronts. He also sought to increase jobs in manufacturing and agriculture by pursuing a series of trade wars. (Most economists, from across the ideological spectrum, think this policy backfired.) Nonetheless, if one had to choose between Trump’s three good policies plus trade wars, or the more modest economic policies of his predecessors, the easy choice is Trump.”

Trump further improved the economy by lowering the unemployment rate, especially for African Americans. As Smith wrote, during Obama’s tenure, the unemployment rate dropped from 909% to 4.7% following the Great Recession. Treasury and Federal Reserve officials said that number couldn’t decrease any more. Trump proved them wrong with the three-pronged approach, and unemployment fell to 3.5%, the lowest since 1969.

Experts also claimed Trump’s goal of 3% growth was impossible, yet Trump made it happen.

Smith suggested this was not merely a continuation of Obama’s policies or a trend that started during his administration.

Trump’s tax cuts, spending increases, and lowered interest rates were a deviation from past policies, leading to economic success. From this knowledge, Smith concluded that Biden should follow Trump’s lead on spending, taxes, and interest rates but stop the trade wars for a successful economy.

Biden, however, has said he would eliminate nearly all of the Trump tax cuts, meaning a return to Obama policies and a poorer economy.

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8 Comments on this post.
  • Jeanne
    14 November 2020 at 10:02 pm
    Leave a Reply

    Those who put Biden/Harris in charge in D.C. are going to be very sorry you did.
    So will all of us Americans.

  • Ralph Charles
    15 November 2020 at 8:58 pm
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    Biden’s policies and direction for America is nothing more than what President Obama did during his term.Biden is not a leader he is a follower,he needs to be lead. He also goes not have the financial smarts or negotiation skills that will benefit our country.Having Biden trying to grow our country,WILL NOT HAPPEN! I just hope that doesn’t destroy the financial well being of our country.

  • Kenneth Hunter
    15 November 2020 at 8:59 pm
    Leave a Reply

    If Biden wishes to make his Presidency rank high amongst other Democratic POTUS he must listen to Americans and not other politicians when laying the groundwork for the next 4 years. He must Reduce the National debt by spending control in Washington and set a strict budget and enforce it so we end up with a surplus each of the next 4 Years with a goal of reducing the Debt as much as humanly possible each of the next 4 years.

  • Beverly
    15 November 2020 at 9:27 pm
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    I will never except or respect Joe Biden as my president,our country is in big trouble!!

  • DOUGLAS L PERLE
    16 November 2020 at 12:44 am
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    Some politicians seem to have no intelligence when it comes to the economy and attempting to make the populations income better. In fact it seems as this new economy that may be coming in 2021 under #46 will make America worse. Airborne

  • Glow
    16 November 2020 at 1:34 am
    Leave a Reply

    It’s so easy for poor white people to believe the lying cult mentality that trump used to fool all of you. You’re still poor as dirt and those rich white people are richer than ever. The republican agenda is always about themselves. You wonderful people even at the expense of millions dying so you can worship and pretend that President Obama did nothing for the good white folks. You go ahead and give your last dime to a desperate, despicable man who will never be president again because he’s taking your money and will still be a one term president. God bless all of you for falling for the biggest joke in history!!!!!

  • Frederick Marsh
    16 November 2020 at 1:50 am
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    First of all, Trump did not lead in lowing interests rates. That was done by the Fed. The tax cuts helped a little, but they did not have a great impact on the economy. Spending is something Democrats do. Obama chose not to greatly increase spending and the overall economy was better for it. Trump’s promise of a growth rate of 4% never happened. In fact, it was never reached 3% per quarter prior to the COVID virus. The fact that 56% of Americans said they were better off 4 years later normally would lead to re-election of the president. The problem this president was totally unprepared for the virus and chose to ignore all warning signs to the detriment of the country.

  • Texas Tea Partier
    16 November 2020 at 4:45 am
    Leave a Reply

    We are now staring down the barrel of an Obama third term economy which will leave us owned by Communist China. Elections have consequences and our children and grandchildren will suffer for it.

  • Leave a Reply

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