Trump vs Biden Economy: Were We Better Off?

With Donald Trump set to return to the presidency in January 2025, there’s no better time to take stock of the economy under his first term and Joe Biden’s administration.

The real economy—that is, what Americans grapple within their lives, as opposed to more abstract macroeconomic data—has been a central issue for the nation, and comparing the two leaders’ policies and results sheds light on what worked and what didn’t. Let’s break down the Trump vs Biden economy and look at growth, inflation, jobs, and the cost of living.

Trump vs Biden Economy: Building vs. Stalling

Under Trump’s leadership from 2017 to 2021, America’s economy experienced steady growth. The GDP grew at an average annual rate of 2.6%, and the stock market hit record highs. Trump’s policies, like the Tax Cuts and Jobs Act of 2017, gave businesses incentives to expand and hire more workers. Deregulation made it easier for companies to grow, and people felt confident about spending and investing.

Biden, on the other hand, faced challenges from the outset in 2021. While GDP grew by an average of 2.3% during his term, much of this growth was recovery from the pandemic, not the kind of organic expansion seen under Trump. Moreover, Biden’s increased taxes and heavier regulations slowed the economy down. Even with some positive moments, like a 3% growth rate in 2024, the general perception among voters was that the Biden economy felt sluggish.

Inflation: A Tale of Two Opposites

If there’s one thing most Americans can agree on, it’s that life has gotten more expensive. Under Trump, inflation remained low and steady and averaged about 1.9% annually. This stability meant that people’s paychecks stretched further. Energy prices were also a major win during Trump’s time, with gasoline prices staying affordable thanks to his focus on domestic oil and gas production.

Compare that to Biden’s administration, where inflation became a serious problem. In June 2022, inflation hit a 40-year high of 9.1%, driven by increased government spending and global supply chain issues. While inflation has since cooled to 2.5%, prices are still stubbornly high. Food costs have risen by 22%, rent by 23%, and energy costs by over 42% since 2020.

Did Biden do anything to slow inflation down? 

Even if Biden failed to contain inflation, it’d be unfair to say that he didn’t act on it. To begin with, he had plenty of reasons to try to stop inflation. Politicians seek to perpetuate their positions of power, and inflation usually knocks them out from office. There are numerous international examples of this, but the case of Gerald Ford can already paint the picture of how detrimental inflation is for electoral success.

Still, whatever measures the Fed and Biden took, including the Inflation Reduction Act, they haven’t been enough to give citizens some relief. Trump, on the other hand, already announced DOGE, with which Elon Musk and Vivek Ramaswamy will help cut government spending. Since cutting spending keeps costs down and hence means less money printed, it should help suppress inflation for once. On the other hand, Biden’s administration did virtually nothing to fight America’s deficit.

Jobs: Quantity vs. Quality

Both presidents added jobs during their terms, but the quality and context of those jobs were very different. Under Trump, the economy added 6.33 million jobs in his first three years. Nearly all of these were full-time positions, and they spanned a range of industries, which helped blue-collar workers as much as white-collar professionals.

Biden often touts that 15 million jobs were added under his administration, but here’s the catch: Most of those jobs were not new. They were positions recovered after the pandemic shut the economy down. Another key difference in the Trump vs Biden economy? Under Biden, government jobs accounted for a much larger share of the employment gains. These jobs are paid for by taxpayers, unlike the private-sector positions that boomed under Trump’s presidency.

Cost of Living: Stretching Paychecks

One of the clearest differences between the two administrations is the cost of living. Under Trump, affordable energy kept transportation and manufacturing costs low, which translated to lower prices for everyday goods. People were buying homes, filling their gas tanks, and saving money.

In contrast, Biden’s policies, including higher taxes and a push for green energy, contributed to skyrocketing costs. Gasoline prices alone rose by 52.9%, and home prices increased by over $100,000 on average during his four years in office.

Federal Spending and Debt: A Growing Concern

Both presidents increased federal spending, but Biden’s approach was more controversial. Trump passed the CARES Act to address the pandemic—a necessary lifeline during a crisis. However, Biden’s American Rescue Plan and additional spending initiatives pushed the national debt to over $36 trillion—a record high. This reckless spending fueled inflation—and left the coming generations responsible for the bill.

What Americans Think

Public opinion speaks volumes about the Trump vs. Biden economy and the impact of their policies. Polls consistently show Americans trust Trump more on economic issues than Biden. In 2024, 46% of Americans trusted Trump to handle the economy, compared to just 32% for Biden​. Nearly half believed the economy would improve under Trump, while only 21% felt the same for Biden​. And voters didn’t just share their opinions in polls—they showed up at the ballot box. The 2024 elections brought a red wave, with Trump winning decisively, even with the popular vote. Republicans also gained ground in Congress, which made it clear: Americans are eager to return to the economic policies of Trump’s first term.

Why Trump’s Second Term will Mean More Growth and Less Inflation

Trump’s economic policies were focused on growth, lower taxes, and less regulation. Biden’s administration prioritized spending and regulatory expansion over growth. As Trump prepares to take office again, Americans are hopeful for a return to policies that prioritize economic stability and affordability.

The numbers, combined with everyday experiences, tell a clear story. While no administration is perfect, the Trump years offered a sense of stability and prosperity that many Americans feel has been missing under Biden. With Trump’s return, voters are eager to see if he can once again deliver on his promise to “Make America Great Again”—this time, by rebuilding the economy.

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