When President Joe Biden left office, the United States economy displayed strong performance across several key indicators. Boasting an unemployment rate of 4.1%, the economy demonstrated resilience and growth during his tenure. Remarkably, the average jobless rate during Biden's four-year presidency was the lowest since the 1960s, a testament to his administration's efforts in job creation and economic management.
Under Biden's leadership, the U.S. added 16.6 million jobs, more than any four-year term of any previous president. This included a significant gain of 750,000 factory jobs, marking the most substantial increase since the 1970s. These achievements reflect the administration's focus on revitalizing American manufacturing and supporting green jobs initiatives through measures like the Chips Act.
The inflation rate, often a critical indicator of economic health, had fallen to 2.9% by the end of Biden's term. This represented a decrease of more than two-thirds from its peak, bringing it closer to the Federal Reserve's inflation target. Many economists have pointed out that this contradicts claims by former President Donald Trump, who asserted that he inherited a struggling economy.
“President Trump is inheriting an economy that is about as good as it ever gets,” said Mark Zandi, chief economist at Moody’s Analytics.
In addition to job growth and stable inflation, incomes saw a substantial increase during Biden's presidency. Adjusted for inflation, there was an average rise of nearly $4,000 in incomes since he took office. Unions played a crucial role in this economic resurgence, securing wage increases ranging from 25% to 60% in industries such as autos, ports, aerospace, and trucking.
“Incomes are up by nearly $4,000 adjusted for inflation [since he took office], and unions have won wage increases from 25% to 60% in industries like autos, ports, aerospace, and trucking. We’ve seen 20 million applications to start small businesses,” stated Biden. “Our economy has grown 3% per year on average the last four years – faster than any other advanced economy.”
The U.S. economy emerged as the only significant global economy experiencing faster growth post-pandemic than pre-pandemic. Wall Street also thrived during Biden's presidency, with the Dow Jones Industrial Average rising by 39% and the S&P 500 surging by 55.7%. This financial growth underscores investor confidence and the administration's successful economic policies.
Manufacturing investment saw a notable increase during this period, more than doubling due to Biden's green jobs legislation and the Chips Act. These initiatives aimed to boost domestic production and foster sustainable economic development.
Despite these achievements, Trump's narrative of inheriting a poor economy finds little support among economists and data analysts. The economic indicators from Biden's term paint a picture of a robust and thriving U.S. economy.
“We’ve seen 20 million applications to start small businesses,” highlighted Biden, reflecting the entrepreneurial spirit invigorated under his administration.