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Economy


Issue Summary
The economy goes through cycles. Generally every 7 years there is a recession. The Actions of Congress and the President can impact the economy but in a capitalist society, the economic engine is tough to hold back. Things that make the economy improve include lowering taxes, lowering interest rates and reducing regulation. Things that slow down the economy are higher taxes, increased regulations or expanding government programs.

Liberal Position

The 8 years of Obama/Biden showed an average economic growth of 1.9%.  This is the slowest growth after a recesion in history. Even if you remove the first year of his presidency, the growth rate does not improve.  No single quarter exceeded 3%.  

The issues stem from the policies.  In one year alone Obama added over 180 regulations on small businesses making it more difficult to start and operate a small business - the engine of economic growth.  There are a number of records set by the Obama/Biden economic policies:

  • Most people receiving food stamps - when Obama left office there were 42 million people receiving foot stamps. 
  • The percentage of people participating in the labor force fell from 65.7% to a low of 62.7% under Obama (more explanation from the Boston Herald).  With people leaving the workforce it artificially made the unemployment rate look better than it really was.
  • Highest number of underemployed people ever (mostly taking part time positions).
  • Increased regulations on oil and gas as well as fracking.

 

Pundits always compare the last 3 years of Obama presidency to the first 3 years of the Trump presidency, instead of comparing the entire 8 year record of Obama.  Review of the US Chamber economic facts under Obama.

Conservative Position

Four months after Trump was elected the Market increased by 12%.  When Trump was elected on election day the stock market DJIA was 18,332.  On February 14, 2020, the market hit 29,277, increase of 10,945 points in just 3.5 years.  This is just before Coronavirus hit the U.S.  The market grew fast under Trump because of the following reasons:

  • Lowest unemployment across the board for all groups
  • Largest labor participation rate in history
  • More companies moving back to the U.S. 
  • First time ever, the U.S. was energy independent and a net exporter of energy.
  • Largest wage growth overall, year of year
  • Largest wage growth for the lowest earners in history.
  • Millions of unfilled jobs, due to low unemployment.
  • Reduced Trade Deficits
  • Several million people came off of food stamps because they had jobs

Read about the success of the Trump presidency after 3 years. 

Many pundits went on TV before election day, claiming that a Trump Presidency would crash the markets.  The opposite happened. 

This was a campaign promise made and kept.

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