Economic Report: Comparing Trump's Pre-COVID Era with Biden's 2024 Economy

 

This blog post explores the U.S. economy during two distinct periods: the pre-COVID era under Donald Trump and the current economy under Joe Biden in 2024. We'll focus on key economic indicators such as unemployment, inflation, and national debt, and how prices for everyday goods and services—like gas, groceries, and construction materials—have changed over time.

Trump’s Pre-COVID Economy (2017-2019)

Before the pandemic, Trump's presidency was marked by a booming economy driven by tax cuts, deregulation, and strong consumer confidence. Here are some key metrics:

• Unemployment: By the end of 2019, the unemployment rate had dropped to 3.5%, the lowest in 50 years. This period saw robust job growth, particularly in manufacturing, healthcare, and technology sectors.

• Inflation: Inflation during Trump’s pre-COVID years remained relatively stable, hovering around 1.8%-2.3% annually. The cost of living increased moderately, keeping consumer confidence high.

• National Debt: Despite the economic growth, Trump’s tax cuts and increased military spending led to an increase in the national debt, which reached about $22 trillion by the end of 2019.

Prices for Common Goods (2019)

• Gasoline: $2.60 per gallon on average.
• Milk (gallon): $3.30.
• Bread (loaf): $2.00.
• Fast food combo meal: $7.00-$8.00.
• Essential groceries (average basket): Around $150 for a week’s worth of groceries.
• Lumber (per thousand board feet): $400.
• Construction materials: Costs were stable, with minimal price fluctuations due to steady demand.

Biden’s Economy in 2024

By 2024, the economy has experienced a recovery from the COVID-19 pandemic, though new challenges have emerged, such as inflation and rising interest rates. Biden's economic policies have focused on large-scale government spending, infrastructure development, and clean energy investments. Here's an overview of the current economic conditions:

• Unemployment: Unemployment has remained relatively low, around 3.8%, reflecting a strong labor market, with many industries bouncing back. However, some sectors, particularly small businesses, are still feeling the long-term effects of the pandemic.

• Inflation: Inflation peaked at over 8% in 2022 but has since moderated to about 3.5%-4% in 2024. This drop has been largely due to aggressive interest rate hikes by the Federal Reserve. However, many households continue to feel the pinch from price increases that outpaced wage growth.

• National Debt: The national debt has ballooned to over $32 trillion due to extensive stimulus spending, infrastructure investment, and social programs during Biden's term. Although the economy has recovered, the massive debt remains a long-term concern.

Prices for Common Goods (2024)

• Gasoline: $3.60 per gallon on average (up from $2.60 pre-COVID).
• Milk (gallon): $4.10 (up from $3.30 in 2019).
• Bread (loaf): $2.50 (up from $2.00 in 2019).
• Fast food combo meal: $10.00-$12.00 (up from $7.00-$8.00).
• Essential groceries (average basket): Around $200 for a week’s worth of groceries (up from $150).
• Lumber (per thousand board feet): $600-$700 (up from $400).
• Construction materials: Prices for construction materials, including steel, copper, and concrete, have increased by 25%-30% compared to pre-pandemic levels, largely due to supply chain issues and high demand for housing projects.

Key Takeaways

• Unemployment: Trump’s pre-COVID economy boasted historic lows in unemployment, while Biden’s 2024 economy has seen a strong job market, but with lingering concerns about wage growth and job quality.

• Inflation: Inflation was low and stable during Trump’s years, but it surged under Biden, peaking during 2022 before stabilizing at higher-than-usual levels in 2024. Inflation remains a challenge for many households, particularly in daily expenses.

• National Debt: Both presidencies saw an increase in national debt, but under Biden, it reached unprecedented levels due to pandemic recovery spending and investments in infrastructure and clean energy.

• Prices for Common Goods: Everyday costs have risen significantly from Trump's pre-COVID years to Biden's 2024 economy. Gas, groceries, and construction materials have all become more expensive, impacting both consumers and businesses alike.

This comparison underscores how different economic policies, coupled with global events, have shaped the U.S. economy under Trump and Biden. The challenges of high inflation and national debt remain pivotal issues as Biden moves into the final stretch of his term.