ENOUGH! It wasn't Trump's economy we liked. It was OBAMA’s!
ENOUGH! It wasn't Trump's economy we liked. It was OBAMA’s!
Let's set the record straight.
Today we are living in the United States of AMNESIA, folks.
People keep saying how "great" the economy was under Trump. But this mythology drives me nuts!
So let’s set the record straight.
Reclaiming the Economic Reality
Let's get one thing clear, up top: Donald Trump INHERITED a strong, thriving economy from Barack Obama. And that is the miracle we should all be celebrating.
When Obama took office in January of 2009, the previous GOP president had run the economy into a ditch. We were deep in the Great Recession—the worst economic crisis since the Great Depression. I don’t have to tell you how hard things were for everyday people then.
Obama pulled us out of that hole with grit and smart policies like the American Recovery and Reinvestment Act. He also laid a foundation for sustained growth by investing in the American middle class.¹ ² He worked to stem the bleeding in the short term while setting us up for healing and growth over the long term.
By the time Trump stepped into the Oval Office, the economy had seen 75 straight months of job growth. Unemployment had been slashed in half from its 2009 peak.³ The motor was fixed and the engine was humming—thanks to President Obama. All Trump had to do was keep the car on the road!
The Myth of Trump's Market Mastery
So how did Trump do? Well, sure – the economy kept growing during Trump's first years. But let's not pretend he somehow built or created that momentum. He inherited it (just like he inherited his father’s millions)!
Annual GDP growth under Trump averaged about 2.5%, on par with growth after the recovery took hold under Obama.⁴
Trump's signature economic move? The 2017 Tax Cuts and Jobs Act. He promised it would help everyone, but we know who really benefited: The top 20% of households grabbed about 65% of the tax cuts in 2018. The bottom 60% got less than 17%.⁵
Meanwhile, the national debt ballooned by nearly $7.8 trillion—a 39% jump—in part because those tax cuts weren't paid for by new revenue or spending cuts anywhere.⁶
Trump just gave his rich friends a tax break – and stuck America with the bill.
Pandemic Pressures and the Full Post-Crisis Picture
Then the planet got rocked by the COVID-19 pandemic. It hit the whole world hard, but our response was uniquely chaotic.
Remember the delays in testing, the mixed messages, the lack of a coordinated strategy?⁷ The results were catastrophic. Businesses shuttered, jobs were lost, and communities—especially those of color—were left vulnerable.
President Biden inherited this mess, and he and Kamala Harris got to work. The American Rescue Plan injected much-needed support into our economy, helping individuals, businesses, and local governments stay afloat.⁸
A Tale of Two Parties
There's a pattern here, folks.
Democratic administrations invest in the middle class and steer us toward sustainable growth. Meanwhile, the last two Republican presidents presided over economic calamities—the Great Recession under Bush and the COVID-19 recession under Trump.
Yes, external factors played their parts. But leadership matters. Policies matter.
Obama and Biden took on the tough job of cleaning up. Recovery isn't instant. It takes time, dedication, and smart policies. But look around:
Unemployment is down to around 3.8% as of September 2023.⁹
Wages are on the rise. People are taking home more.¹⁰
Inflation is showing signs of cooling off.¹¹
We're moving in the right direction.
Harris Has Plans to Pave the Way Forward
What’s more: Vice President Kamala Harris has bold ideas to build on this progress:
A $5,000 Child Tax Credit to lift families out of poverty¹²
$25,000 for first-time homebuyers to help folks build wealth and stability¹³
A $50,000 tax credit to start a business to fuel entrepreneurship in our communities
Lowering health care and prescription drug costs by empowering Medicare to negotiate prices¹⁴
Tackling the housing crisis by building 3 million new homes. More supply means more affordable options¹⁵
Closing tax loopholes and beefing up IRS enforcement¹⁶ to make the wealthiest pay their fair share.
These policies double as investments. Not only do they help right now—but watch as they pay dividends for the next generation.
Don’t Get Caught in the Con
People like to romanticize the past, but let's not get it twisted. The economic momentum we had from 2016 to early 2000 were NOT because of Trump's policies. The people who benefited from Trump-specific were the rich and the super-rich.
They were the result of years of hard work before he took office.
Now Trump is talking about imposing broad tariffs —a 20% hit on imports. Sounds tough, but who actually pays the price? We do – the American consumer. It’s nuts. Trump’s tariffs would act like a huge sales tax that Americans would have to pay.
Tariffs are essentially taxes on consumers. Past tariffs cost American households hundreds of dollars a year.¹⁷ Do we want to go down that road again?
We need leadership that believes in investing in people—not padding the pockets of the already wealthy. Let's support policies that uplift the middle class, provide real opportunities for growth, and secure a prosperous future for all of us.
Let's remember whose economy we really loved—and why.
Sources
¹ The Recovery Act, The White House Archives.
² The American Recovery and Reinvestment Act: Successes and Shortcomings, Brookings Institution.
³ Job Growth by President, U.S. Bureau of Labor Statistics via FactCheck.org.
⁴ Real GDP Growth by President, The Balance.
⁵ Distributional Analysis of the Tax Cuts and Jobs Act, Tax Policy Center.
⁶ National Debt Increase Under Trump, Peter G. Peterson Foundation.
⁷ Timeline of the Coronavirus Pandemic and U.S. Response, Council on Foreign Relations.
⁸ The American Rescue Plan, The White House.
⁹ The Employment Situation – September 2023, U.S. Bureau of Labor Statistics.
¹⁰ Average Hourly Earnings of All Employees, U.S. Bureau of Labor Statistics.
¹¹ Consumer Price Index – August 2023, U.S. Bureau of Labor Statistics.
¹² The Expanded Child Tax Credit Is a Proven Boost to Families, Center on Budget and Policy Priorities.
¹³ Downpayment Toward Equity Act of 2021, Congress.gov.
¹⁴ Lowering Prescription Drug Costs for Americans, The White House.
¹⁵ The State of the Nation’s Housing 2021, Joint Center for Housing Studies of Harvard University.
¹⁶ Tax Enforcement and Compliance, U.S. Department of the Treasury.
¹⁷ The Impact of the 2018 Trade War on U.S. Prices and Welfare, National Bureau of Economic Research.
Addendum: Fact Check for Challenged Sections
To anticipate and address potential challenges, here's a fact check of key sections:
1. Obama's Role in Economic Recovery
Claim: Obama pulled us out of the Great Recession with policies like the American Recovery and Reinvestment Act (ARRA).
Fact Check: The ARRA, enacted in February 2009, was a $787 billion stimulus package aimed at boosting economic activity and employment. The Congressional Budget Office reported that ARRA increased the number of employed people by between 1.4 million and 3.3 million by the end of 2010.
Source: Congressional Budget Office
2. Job Growth and Unemployment Reduction
Claim: By the time Trump took office, the economy had seen 75 straight months of job growth, and unemployment had been halved.
Fact Check: Data from the Bureau of Labor Statistics shows continuous job growth from October 2010 through January 2017. Unemployment decreased from 10% in October 2009 to 4.7% in January 2017.
Source: Bureau of Labor Statistics
3. GDP Growth Under Obama and Trump
Claim: Annual GDP growth under Trump averaged about 2.5%, on par with growth after the recovery under Obama.
Fact Check: Real GDP growth averaged approximately 2.3% during Obama's second term (2013–2016) and about 2.5% during Trump's first three years (2017–2019). This indicates a continuation rather than a significant acceleration.
Source: Bureau of Economic Analysis
4. Distribution of Tax Cuts
Claim: The top 20% of households received about 65% of the benefits from the 2017 Tax Cuts and Jobs Act.
Fact Check: The Tax Policy Center confirmed that in 2018, the top 20% of earners received approximately 65% of the tax benefits, while the bottom 60% received about 17%.
Source: Tax Policy Center
5. Increase in National Debt
Claim: The national debt increased by nearly $7.8 trillion under Trump, a 39% jump.
Fact Check: The national debt rose from about $19.9 trillion at the end of 2016 to approximately $27.7 trillion by the end of 2020, marking an increase of $7.8 trillion or 39%.
Source: U.S. Treasury
6. Handling of the COVID-19 Pandemic
Claim: The U.S. response to COVID-19 was chaotic, with delays in testing and a lack of a coordinated strategy.
Fact Check: Reports highlight initial testing delays, inconsistent federal messaging, and coordination challenges between federal and state governments.
Source: Government Accountability Office
7. Economic Recovery Under Biden
Claims:
Unemployment is down to around 3.8% as of September 2023.
Wages are on the rise.
Inflation is showing signs of cooling off.
Fact Check:
Unemployment: The BLS reported an unemployment rate of 3.8% in September 2023.
Source: BLS Employment Situation ReportWages: Average hourly earnings have increased over the past year, indicating rising wages.
Source: BLS Earnings DataInflation: The Consumer Price Index showed a moderation in inflation rates compared to previous peaks.
Source: BLS CPI Report
8. Impact of Tariffs on Consumers
Claim: Past tariffs have cost American households hundreds of dollars a year.
Fact Check: Studies estimate that tariffs imposed during 2018–2019 cost the average U.S. household between $400 and $800 annually due to higher prices on imported goods.
Source: Federal Reserve Bank of New York
I know it makes NO sense that these things need to be repeated but they have to be as too many CHOOSE to have amnesia! Honestly the kool-Aid is real.
Phenomenal recap! 💥