United States – During the pre-election debate, U.S. President Joe Biden and his Republican competitor, Donald Trump, both claimed that everything was good and rosy economically when they were in power and accused each other of inflationary agony that preceded the election on November 5.

“He’s done a poor job, and inflation is killing our country. It is absolutely killing us,” said Trump, who was president from 2017-2021. Under his own watch, Trump said, “Everything was rocking good.”

Biden Defends Economic Policies and Blames Trump

Biden blamed inflation, which was at its highest in two years at 9% and has been able to reduce to 3.25%, on dissatisfaction with how Trump has managed the COVID-19 pandemic and corporate greed, as reported by Reuters.

“The economy collapsed” under Trump, Biden said, and when he came into office, “what we had to do is try to put things back together again.”

Huge shocks from the COVID-19 crisis that started in March 2020 complicate comparisons of economic achievements between the two competitors.

Inflation has undoubtedly been much higher under Biden than under Trump in the United States. For the entire time, Trump was in office, there was not even one month when the consumer price inflation rate was above 3%—and for most of it, the Federal Reserve—which is tasked with controlling inflation—was concerned about it being too low.

Inflation during Biden’s time has been greater than 3 percent in all the months except for March, April, and May of 2021 and higher than 5 percent in more than half of his term to date.

The damage from higher prices has been significant: despite wage increases, the larger checks received by American workers as the result of rising wages are worth less than they were in 2021 when Biden assumed office.

When inflation first really started to accelerate in the spring of 2021, almost everyone at the Fed and among economists who had forecasted agreed that it would be a temporary phenomenon. However, by the turn of the year 2021 hardly anyone was in that mindset.

Rates for borrowing went up even more from the Fed to combat inflation and do you know what? Prices are no longer spiraling up at the same rate they once were.

Federal Reserve’s Response to Inflation

Traditionally, this is bad for the economy because, other things equal, higher interest rates slow employment growth, but the labor market has proved tight, with the unemployment rate below 4% in the last two years, the longest stretch since the 1960s.

As inflation has steadily decreased, the average wage growth rate in the U.S. has been superior to inflation for over a year now, and lower-income earners—such as those in leisure and hospitality—have experienced the highest rise in real wages.

Economists said that inflation has risen because of a manifold of reasons, such as rebounded demand after closing affected by the pandemic, virgin households from the stimulus checks from Trump and Biden’s presidents, and interrupted supply affected by the pandemic and Russia’s invasion of Ukraine, as reported by Reuters.

GDP Growth Comparison

Period-on estimates of quarterly GDP growth during Trump’s first three years and during Biden’s term, beginning in 2021, compounded at nearly the exact rate that, annually, yields around 2. 7%.