In a recent appearance on Fox News, Dr. Janette Nesheiwat claimed that, under President Donald Trump, America had had a “thriving economy.” She compared the apparent benefits of the former President’s economy to America today. However, her comments do not appear to reflect the truth of the situation.
Dr. Nesheiwat’s Comments
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Dr. Nesheiwat made these comments during “Outnumbered” on Fox News. She spoke about how the economy was better under Trump and showed her support for him in the 2024 elections. She said, “Under Trump, we had a thriving economy. You could fill up your gas tank and go for a movie.”
The Reality
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However, the data from an ABC report in 2021 shows a different story. Additionally, economists pointed to metrics like GDP growth, wages, and business investment to reject this claim. These figures ranged from decent to mediocre under Trump, suggesting that praise for his financial decisions may not be truthful.
Manufacturing Sector Performance
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Under Trump’s leadership, the manufacturing sector experienced significant job losses. These were particularly significant during the outbreak of the COVID-19 pandemic in March and April 2020. By the time Trump left office, there were 154,000 fewer manufacturing jobs than when he assumed the presidency after President Obama.
Economic Growth Trends
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The U.S. economy initially grew in Trump’s first two years, peaking at 2.9% in 2018. However, it slowed down to 2.3% in 2019. The real Gross Domestic Product (GDP) declined by 3.4% in 2020 – the largest drop since 1947. This contrasts with Trump’s promise of achieving 4% to 6% annual economic growth, which never happened.
Household Income and Poverty
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During Trump’s presidency, average household income increased to $67,521 in 2020. This was a 6% growth from 2016. However, the pandemic caused a decrease in incomes and an increase in the poverty rate. This stood at 11.4% in 2020. Despite this, the supplemental poverty rate, which includes government assistance, fell to a record low of 9.1%.
Regulatory Environment
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Trump’s administration saw a reduction in the growth of federal regulation. According to QuantGov, the number of restrictive phrases in the Code of Federal Regulations slightly increased by 0.9% during his tenure. By the end of Trump’s presidency, the number of these words had increased from 1.08 million in 2019 to 1.09 million in 2020.
Deregulation Efforts
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Trump’s administration rolled back many regulations that were seen as unnecessary, particularly those affecting low-income Americans. For example, healthcare regulations were cut, leading to estimated savings of $6.6 billion and a reduction of 42 million hours in regulatory compliance work through 2021. These deregulatory efforts were projected to save American consumers and businesses over $220 billion annually.
Gasoline Prices
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Under Trump, gasoline prices were lower compared to the Biden administration. The average gasoline price under Biden through August 2023 was $3.51. This is a clear increase compared to during Trump’s tenure. Despite the pandemic, the average gas price during Trump’s presidency was approximately $2.48.
The Complexity of Gasoline Prices
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The highest recorded gas price during Trump’s term was $2.987 in May 2018. However, gas prices are influenced by various factors beyond the president’s control, such as crude oil costs and global market dynamics. The lowest average weekly gas price during Trump’s presidency was $1.77 per gallon in April 2020, mostly because of decreased travel during the pandemic.
Unemployment Fluctuations
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The Trump administration saw a historic low in unemployment at 3.5%, which was the lowest figure in over 50 years. However, the nation faced a sharp rise to 14.8% during the pandemic. Upon Trump’s departure, the unemployment rate was 6.3%, higher than the 4.7% rate inherited from Obama.
Labor Force Participation
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The labor force participation rate is the percentage of the population age 16 and older who are either employed or actively seeking work. Under Trump, this rose to 63.4% in January 2020. However, it dropped to 61.4% by the time he left office, partly due to early retirement because of the COVID-19 crisis. The rate fell from 65.7% to 62.8% during the Obama years.
Tax Reforms
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The Tax Cuts and Jobs Act of December 2017 lowered corporate income tax from 35% to 21%. This reduced the rate to lower than the average for other similar countries. However, some economic analysts criticized this move for unfairly benefiting the wealthy, as it gave them advantages in terms of investment income, estate tax, corporate profits, and other areas.
Issues of National Debt
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According to ABC News, America’s national debt increased to over $7 trillion during Trump’s presidency. Further analysis from ProPublica and the Washington Post revealed that this is the third-highest increase in the national debt, compared to the economy’s size, of any president in U.S. history.
Trade War with China
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In 2018, Trump began a trade war with China, which resulted in increased tariffs, a larger trade deficit, job losses, and a $1.7 trillion loss in U.S. firm stock values. Despite these challenges, the stock market experienced overall growth during Trump’s presidency. However, it was mostly wealthier Americans who felt the benefits.
Fair and Reciprocal Trade
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President Trump’s tenure included significant changes in trade policy, aiming to defend American workers. Key achievements include withdrawing from the Trans-Pacific Partnership (TPP), replacing NAFTA with the USMCA, and negotiating several other trade deals. The USMCA was expected to generate over $68 billion in economic activity and potentially create over 550,000 new jobs over ten years.
Federal Reserve’s Role
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With Trump’s presidency, the stock market did show some improvements. By the end of his presidency, the Standard & Poor’s 500-stock average showed a closing figure that was 67.8% higher than the day before Trump assumed office. However, economists attribute much of the stock market’s success to the Federal Reserve’s independent actions rather than direct White House policies.
Inflation Under Biden
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In comparison, under President Joe Biden’s administration, inflation and gasoline prices have risen. In June 2022, gasoline peaked at $5 and averaged $3.51 during August 2023. Economists have attributed this rise to numerous world issues, including the Ukraine-Russian war and post-pandemic activities.
Comparison with Other Administrations
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When comparing Trump’s economic performance with previous presidents, it’s important to consider other factors. These include the unprecedented challenges of the COVID-19 pandemic. Each administration faces unique circumstances that significantly impact economic outcomes.
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The post Here’s How America’s Economy Flourished Under Trump’s Leadership appeared first on Fine-Tuned Finances.
