Ever since James Carville coined this phrase during the Clinton campaign in 1992, the idea that elections are won or lost based on economic factors has taken hold. Ronald Reagan raised the same concerns when he famously asked voters during a debate with Jimmy Carter, “Are you better off than you were four years ago?” Voters answered by electing Reagan in 1980 and Clinton in 1992.
Has the economy been better in recent years under Republicans or Democrats? Let’s compare the economies under Trump/Pence and Biden/Harris. An article in The Washington Post offers useful information to help us answer the question. Here are a few highlights:
Job Gains: Employers have created more than 15 million jobs since Biden/Harris took office. The labor market has remained strong even as the Fed has raised interest rates to slow the economy. The Trump/Pence administration experienced a net job loss during his term, largely as a result of the pandemic.
Unemployment: Unemployment was low during both presidencies. It obviously spiked during the pandemic but came down to record lows under Biden/Harris. Unemployment for Hispanic workers, black women, and people with disabilities all hit record lows under their leadership.
Economic Growth and Recovery: The economy grew 6.8% during Trump/Pence’s term and 8.4% so far under Biden/Harris. The US economic recovery under the Democrats has been the envy of the world! Reasons for this include 1) wage growth is rising faster than inflation, 2) a USA manufacturing boom, 3) the lowest unemployment in a half-century, 4) crime has reached record lows and 5) the stock market has set all time highs after all time high.
Home Affordability: Home prices have spiked during Biden/Harris’s term along with mortgage rates which rose when the Fed raised rates to cool inflation. To address these concerns, Biden/Harris is working with Congress to pass mortgage relief credit for first-time home buyers, a one year tax credit up to $10,000 to middle class families who sell starter homes, and to reduce closing costs for homeowners applying for mortgages and refinancing.
Inflation: This has been one of the biggest challenges to address. The explosion of demand after Covid along with supply chain problems led to the highest inflation in 40 years. Everyone has felt this. Inflation has recently come down to roughly 3% but it has been a challenge for many Americans. Biden/Harris’s Inflation Reduction Act is making an impact and his management along with that of the Fed has avoided the recession many thought was inevitable.
Student Debt: This has been an ongoing struggle for Americans saddled with a debt that keeps them from developing financial security. Under Biden/Harris student loan debt has been reduced nationwide for the first time in history. They are also addressing the problem of runaway interest where the amount borrowers owe increases even as they make income based payments. This accrued interest will now be eligible for forgiveness.
The “Left Behind” Counties: A recent article in the NYT described the remarkable turnaround in America’s “left behind” counties during the Biden Harris/Harris administration.. The last three years have seen the fastest growth of new jobs and new businesses there since the Clinton Administration. “This is the kind of thing we couldn’t have even dreamed of five or six years ago,” said John Lettieri, president of the Economic Innovation Group. There are roughly 1000 of these countries in the US and after being left behind in the Trump/Pence economy, they have staged a dramatic turnaround under Biden Harris/Harris.
Everyone has to answer Carville’s and Reagan’s questions for themselves. The evidence shows that with Democrats in charge we have experienced significant economic growth, wage gains, manufacturing growth, full employment, and the world’s best economy. Where challenges still exist, Democrats are taking actions to address them. The major economic legislation under Trump/Pence was to cut taxes for the wealthy and corporations which dramatically increased our national debt. We cannot go back to a Republican led economy that only favors the few. Vote Democrat for more economic wins for the many!
