Donald Trump often takes credit for the economic growth during his presidency, painting it as a remarkable turnaround. However, the reality is far less dramatic. Much of the economic success Trump claims credit for is simply a continuation of trends set during President Obama’s tenure. By looking at key economic indicators, it becomes clear that Trump inherited a growing economy, rather than rescuing a faltering one.
Inheriting a Strong Recovery
Trump stepped into an economy that was already well on its way to recovery. Obama’s administration faced the immense challenge of pulling the U.S. out of the Great Recession, and by the time he left office, the economy had seen six straight years of growth. Unemployment had been consistently dropping, and the groundwork for future gains was already set. Trump didn’t inherit a struggling economy but rather one that was steadily improving.
Job Growth: Continuing an Upward Trend
One of Trump’s most common boasts is about job creation. He often points to record-low unemployment rates, especially among minority groups, as a major achievement of his presidency. However, this job growth did not begin with Trump. In fact, unemployment rates had been falling for over eight years prior to Trump’s inauguration. Obama managed to reduce unemployment from 10% to below 5% by the time he left office. Trump inherited this positive trend and simply maintained its momentum.
Misleading Comparisons
Trump supporters frequently use misleading comparisons when discussing the economy, such as comparing Obama’s first year to Trump’s. This is problematic because Obama took office during the worst economic downturn since the Great Depression, while Trump took over a flourishing economy. Obama’s policies helped pull the country out of a deep recession, while Trump benefited from an economy already well into recovery.
Wage Stagnation: An Ongoing Problem
Despite Trump’s claims of economic improvement, wage growth remained relatively flat during his presidency. The last significant spike in wage increases occurred in late 2016, before Trump took office. Since then, wages have struggled to keep pace with the rising costs of housing, education, and healthcare. While Trump’s policies favored the wealthy and corporations, the benefits for middle- and working-class Americans were much less pronounced.
Tax Cuts and Wealth Inequality
Trump’s tax cuts were heavily skewed toward the wealthy, exacerbating income inequality rather than reducing it. While the stock market saw impressive gains, much of the benefit went to those at the top. For the average American, rising costs and stagnant wages made it harder to keep up, even as the wealthy saw their fortunes grow.
The Stock Market Boom
It’s true that the stock market surged under Trump, with the Dow Jones Industrial Average making significant gains after his election. However, the stock market is only one measure of economic health, and it disproportionately benefits the wealthy. Other indicators, such as wage growth and income inequality, tell a different story about the broader economy.
A Legacy of Continuation, Not Creation
The economic growth that Trump takes credit for was largely a continuation of the progress made under Obama. From GDP growth to job creation, Trump’s presidency maintained trends already in place when he took office. While Trump may have benefited from these gains, he did not create them. In reality, his presidency rode the wave of a recovery that began during Obama’s administration, and his economic policies only deepened existing inequalities.
Trump’s claims of building “the greatest economy” ignore the fact that he inherited a stable and growing economy from his predecessor. Rather than turning things around, Trump simply continued the trends that were already underway, benefiting from the hard work done before he took office.
Further Reading:
- Did Trump Create or Inherit the Strong Economy?
- Data show Trump didn’t ‘build’ a great economy. He inherited it.
- “Years of economic decay are over” because Trump “reversed the failed economic policies of the previous administration.”
- Trump says he built a ‘booming’ economy. Economists say he inherited it.
- Trump boasts about a great economic record. Too bad it’s Obama’s.
- Did Trump Create Or Inherit A Strong U.S. Economy?
