Trump Claims 'Economic Turnaround Of Historic Proportions' — But Did He Just Inherit Obama's Strong Economy?

As the 2024 presidential election draws nearer, the economy during former president Donald Trump's presidency is under a microscope. When Trump was in office, he would often tout his role in creating what he described as an "economic turnaround of historic proportions." But not everyone is so quick to believe that Trump was the reason for this turnaround during his time in office. Many critics state that he simply inherited a strong economy from his predecessor, former president Barack Obama. 

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Obama took office in 2009, when the United States was grappling with the aftermath of the Great Recession, the most severe financial crisis since the Great Depression. The economy slowly regained its footing under Obama's leadership through a series of measures. Some of these include the stimulus package, the Troubled Asset Relief Program (TARP) and other significant financial reforms. 

By the time Obama left office, the economy was in a far better place. Unemployment decreased from 10% to 4.7%, and the stock market saw substantial gains. 

Trump claimed credit for an economic renaissance, saying that he inherited a "disaster" from Obama and turned it into a success. However, many economists argue that the economic recovery was underway long before Trump took office. GDP growth, job creation, unemployment rates and other key indicators were trending up. 

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Under Trump's presidency, the unemployment rate reached historic lows of 3.5%. However, critics have pointed out that the decline in unemployment began during Obama's administration. The job growth that Trump takes credit for — while he did extend the streak — began long before his administration. 

Trump's most significant economic policy, the 2017 Tax Cuts and Jobs Act (TCJA), was created to enhance further growth by reducing corporate and individual taxes. The tax cuts provided a short-term boost, but others are quick to point out that Trump's tariff policies are also worth noting when discussing his economic legacy. 

Many of Trump's reforms expire in 2025; however, studies show that the TCJA contributed to economic growth through raising U.S. capital investment. It also raised spending since individuals had more after-tax income to spend when the law went into effect. 

While there is a lot to show for Trump inheriting the momentum of a rising economy from Obama's time in office, he also faced controversies during his own time in office. The COVID-19 pandemic brought about a global recession, some of the effects we are still feeling today. The annual deficit exceeded more than $1 trillion by the time Trump left office. Trump's trade policies of implementing tariffs on global trading partners intended to benefit American workers only led to tariffs from other countries as retaliation and did nothing for the job market. 

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While Trump ran up the national deficit during his presidency, he isn't the only president who has done so. Obama, George W. Bush, and Trump all have the largest budget deficits of any other president. 

There's been good and bad, economically speaking, in just about every presidency this country has seen. And it's important to note that no matter who is in office, they are not solely responsible for the state of the economy. A lot of external factors come into play, including decisions from the Federal Reserve and major historical events, like a pandemic. 

Trump inherited a strong economy, and his administration maintained many of the positive trends initiated during Obama’s tenure. However, whether his policies for his re-election will lead to long-term economic stability or sow the seeds for future challenges remains to be seen. As voters consider the next election, they must weigh the economic records of all candidates, including Trump and Harris, to determine the best path forward.

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