Exploring the Potential for a Stronger Economy: Evaluating Biden and Trump’s Impact on Americans
In the realm of economic policies, both President Joe Biden and former President Donald Trump have missed the mark by dismissing the traditional Washington Consensus that advocates for fiscal prudence, monetary discipline, and free trade. Their approaches to economic programs have resulted in a staggering $13 trillion increase in national debt from 2017 to 2023, fueled by Trump’s tax cuts and Biden’s subsidies for industrial policy and pandemic relief.
One of the shared aspects of their economic policies is their stance on China. Like Trump, Biden has maintained tariffs on China and withdrawn from the Trans-Pacific Partnership (TPP). Additionally, Biden has shown reluctance in pursuing new free trade agreements. However, Biden has taken a more strategic approach by seeking collaboration with U.S. allies to limit China’s access to cutting-edge technology. While this move may protect certain American industries, it also cedes advantages to China in rapidly growing markets worldwide. According to a Bloomberg/Morning Consult poll, only 26% of voters in seven swing states believed that Bidenomics was beneficial for the U.S. economy. This is due, in part, to the lack of popularity of Biden’s industrial policies promoting electric vehicles (EVs), semiconductors, and green energy. For example, EVs are accumulating on car lots as Americans continue to show a preference for hybrids and gas-powered vehicles. Furthermore, the cancellation of big-ticket offshore wind power projects due to rising costs and environmental concerns raises concerns about the increasing vulnerability of winter electricity supplies as the electrical grid becomes more reliant on solar and wind energy.
Trump’s economic policies revolve around trade and taxes. He has expressed his desire to extend the 2017 tax cuts beyond their expiration date in 2025 and further reduce corporate taxes. However, these tax cuts would exacerbate the federal deficit, which is already projected to average 5.5% of GDP over the next five years. This situation would put pressure on the Federal Reserve to print more money and create more inflation to maintain low interest rates and prevent crowding out private investment. Trump’s proposed 60% tariff on Chinese imports could potentially reduce bilateral trade to near zero, adversely affecting U.S. competitiveness in third-country markets. Moreover, his approach of targeting Europe and threatening NATO undermines the potential for continued European cooperation, especially in limiting Chinese access to chipmaking technology.
Despite facing 91 felony charges in multiple states and Washington, D.C., Trump continues to outpoll other experienced Republicans, such as the establishment candidates. This can be attributed to a growing sentiment among Americans, even moderates, that the legal system, major political parties, and media are not working in their favor. There is a receptive audience for a third candidate who can propose concrete actions to consolidate entitlements, rationalize Defense Department personnel and procurement for greater efficiency, address immigration concerns, and alleviate burdens on cities. Americans seek a candidate who can inspire unity rather than inflame divisions.
It is important to note that Trump’s proposals may be impractical without securing 60 votes in the Senate. Nonetheless, they still pose a threat to many moderate Americans due to their potential impact on civil service tenure, national teacher certification, and public universities. What is needed is a candidate who can assuage fears and navigate a moderate course defined by responsible federal budgeting, trade policies, and immigration reforms.
In conclusion, both Biden and Trump have presented flawed economic programs that have contributed to a significant increase in national debt. Biden’s approach of protecting certain industries from Chinese competition has limited benefits and cedes advantages to China in global markets. Trump’s focus on tariffs and tax cuts could harm U.S. competitiveness and exacerbate the federal deficit. The American people deserve a candidate who can offer responsible economic policies, unity, and a vision for a stronger economy.
