Fact-checking Biden’s 2024 economic pitch: ‘Bidenomics’

President Joe Biden’s Misleading Claims on “Bidenomics”

President Joe Biden delivered a speech on Wednesday, promising a “fundamental break” with “trickle-down economics” as he introduced his economic agenda, known as “Bidenomics.” However, his speech was filled with misleading claims that require fact-checking.

The Truth Behind Trump’s Tax Cuts

Biden criticized his predecessor, former President Donald Trump, for enacting tax cuts that supposedly only benefited the wealthy and cost the government $2 trillion. However, this claim is inaccurate. The Congressional Budget Office stated that the government is projected to collect more revenue over the next decade due to the tax cuts. In fact, in the first year after the tax cuts were signed into law, the federal government collected slightly more revenue overall than the previous year. The decrease in the corporate tax rate also led to increased private investment, wage growth, and job creation. Additionally, the tax cuts provided benefits to middle- and low-income individuals, resulting in rising average household incomes.

Misleading Job Creation Numbers

Biden boasted about creating 13.4 million new jobs, claiming it to be a record-breaking achievement. However, this claim is highly misleading. The majority of these jobs were simply a result of the economy recovering from the pandemic-induced job losses. In reality, Biden only created around 4 million new jobs during his first two years in office, while Trump created over 5 million jobs during the same timeframe.

The Cost of Renewable Energy

Biden stated that wind and solar energy are already cheaper than coal and oil, and that no new coal-fired plants would be built in America due to their high costs. However, this claim fails to acknowledge the role of government tax breaks and subsidies for green energy companies, as well as the increased regulatory burden on coal and oil producers. These factors have artificially skewed the prices, making renewable energy appear more affordable. The reality is that the Biden administration’s policies have influenced the cost comparison.

Inflation and Its Causes

Biden claimed that inflation is now less than half of what it was a year ago and attributed it to Russia, the war in Ukraine, and other external factors. While inflation has decreased from its peak last year, it remains significantly higher than before Biden took office. The consumer price index has risen by 4.9% from April 2022 to April 2023, indicating that prices are still rising faster than before Biden’s inauguration. The war in Ukraine did not cause inflation, and gas prices were already high before the conflict began. Critics argue that Biden’s obstruction of domestic energy production has contributed to the rise in gas prices.

Misleading Unemployment Rate Claims

Biden claimed that he reduced the unemployment rate from over 6% to below 4% in his first year in office. However, this claim is misleading because the unemployment rate was already declining before he took office. The primary drivers of the unemployment rate’s fall were the easing of pandemic restrictions and the end of lockdowns, both of which Biden initially opposed as a presidential candidate. Furthermore, the current unemployment rate, amid a labor shortage, is still not as low as it was under Trump before the pandemic.

Misrepresentation of Deficit Reduction

Biden has repeatedly touted his team’s reduction of the deficit by $1.7 trillion during his first two years in office. However, this claim is misleading. The deficit reduction occurred as a result of the end of pandemic programs that were implemented during Trump’s presidency. Biden’s focus has been on record levels of spending, and he requested relief funds in 2021 that exceeded what was necessary at the time.

It is important to fact-check and critically analyze the claims made by political leaders to ensure an accurate understanding of their policies and their impact on the economy.