President Joe Biden has criticized former President Donald Trump's economic policies, claiming they favored the wealthy and increased the national deficit. In a recent tweet, Biden said, "Trump thinks he had the greatest economy in the world. Malarkey. His economy rewarded the wealthy, cut taxes for billionaires and corporations, and raised the deficit more than any president has in one term."
During his presidency, Trump implemented several economic measures that he argued would boost the U.S. economy. One of the most significant was the Tax Cuts and Jobs Act of 2017. This legislation reduced the corporate tax rate from 35% to 21% and provided tax cuts for individuals, with the most substantial benefits going to the highest earners. While these measures were aimed at stimulating economic growth, critics argue that they disproportionately benefited the wealthy and large corporations.
The tax cuts led to an initial boost in economic activity, with GDP growth and stock market performance improving. However, the benefits were not evenly distributed. The wealthy and corporations enjoyed significant tax savings, while the middle and lower-income earners saw only modest benefits. Critics argue that this exacerbated income inequality in the United States.
Additionally, the tax cuts contributed to a significant increase in the national deficit. When Trump took office in January 2017, the national debt stood at approximately $19.9 trillion. By the end of his term in January 2021, it had risen to around $27.8 trillion. This increase of nearly $8 trillion is the largest single-term rise in the national deficit by any U.S. president.
Biden's critique highlights concerns about the long-term impacts of Trump's economic policies. The increased deficit may limit the government's ability to respond to future economic crises and invest in critical areas such as infrastructure, education, and healthcare. Furthermore, the benefits of Trump's tax cuts did not reach all Americans equally, leaving many feeling left behind.