{"id":2243955,"date":"2024-05-14T03:47:02","date_gmt":"2024-05-14T07:47:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/since-biden-inherited-the-trump-boom-the-whole-economys-gone-bust\/"},"modified":"2024-05-14T03:52:06","modified_gmt":"2024-05-14T07:52:06","slug":"since-biden-inherited-the-trump-boom-the-whole-economys-gone-bust","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/since-biden-inherited-the-trump-boom-the-whole-economys-gone-bust\/","title":{"rendered":"Despite Biden inheriting the Trump boom, the economy has taken a downturn"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fsince-biden-inherited-the-trump-boom-the-whole-economys-gone-bust%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2243955&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The article discusses the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/on-inflation-biden-knows-hes-in-dire-straits\/\" title=\"On Inflation, Biden Knows He\u2019s In Dire Straits\">economic challenges faced<\/a> under President Biden&#8217;s administration, contrasting the pre and \u200dpost-Covid economic scenarios. It highlights key \u2064issues such as\u200d GDP growth, inflation, employment trends, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/treasury-secretary-janet-yellen-we-have-to-consider-rising-inflation-rates-when-doing-stimulus-package\/\" title=\"Treasury Secretary Janet Yellen: \u2018We Have To Consider\u2019 Rising Inflation Rates When Doing Stimulus Package\">labor force participation<\/a>, bankruptcy\u2063 filings, and consumer \u2063financial struggles. The analysis points out the \u2064economic\u2062 impact and\u200b performance under Biden&#8217;s leadership, raising concerns about the country&#8217;s economic\u2063 future.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"article-content\">\n<p>For years, President Joe Biden was flying west to east with the prevailing winds, economically speaking. During Covid, politicians (primarily Democrats) closed down large portions of the economy. When Covid ended, the economy \u201cgrew\u201d because that\u2019s what happens when you go from a partially closed economy to an entirely open one.<\/p>\n<p>Why economists fail to recognize this easy-growth environment is befuddling. Now, in rapid succession, we have a <a href=\"https:\/\/www.cnn.com\/2024\/04\/25\/economy\/first-quarter-gdp-economy\/index.html#:~:text=Gross%20domestic%20product%2C%20which%20measures,2022%20when%20the%20economy%20contracted.\" target=\"_blank\" rel=\"noreferrer noopener\">weak GDP report<\/a>, poor <a href=\"https:\/\/www.cnn.com\/2024\/05\/03\/economy\/april-jobs-report-final\/index.html\" target=\"_blank\" rel=\"noreferrer noopener\">jobs<\/a> and <a href=\"https:\/\/www.cnn.com\/2024\/05\/09\/economy\/jobless-claims-highest-level-since-august\/index.html\" target=\"_blank\" rel=\"noreferrer noopener\">unemployment<\/a> reports, another terrible <a href=\"https:\/\/www.cbo.gov\/publication\/59711\" target=\"_blank\" rel=\"noreferrer noopener\">fiscal report<\/a>, and more awful <a href=\"https:\/\/www.cnn.com\/2024\/04\/10\/economy\/cpi-consumer-price-index-inflation-march\/index.html\" target=\"_blank\" rel=\"noreferrer noopener\">inflation reports<\/a>. Horrible data that even the pro-Biden media <a href=\"https:\/\/www.cnn.com\/2024\/04\/25\/markets\/wall-street-reaction-gdp-report\/index.html\" target=\"_blank\" rel=\"noreferrer noopener\">can\u2019t cover up<\/a>.<\/p>\n<div class=\"fdrlst__b89e9-paragraph-2-long d-flex justify-content-center\" style=\"margin-left: auto; margin-right: auto; text-align: center; \" id=\"fdrlst__b89e9-1933936421\">\n<div id=\"div-gpt-ad-1379703300879-0\" class=\"mb-30\"><\/div>\n<\/div>\n<div class=\"fdrlst__b89e9-92deab73f415ec53c899db0c22568af2 fdrlst__b89e9-paragraph-2\" id=\"fdrlst__b89e9-92deab73f415ec53c899db0c22568af2\"><\/div>\n<p>The truth is that Biden\u2019s economic numbers were never any good. And now that the easy-growth environment of the post-Covid era is well behind us, Biden \u2014 and the country \u2014 face a terrible economic reckoning.<\/p>\n<h2 class=\"wp-block-heading\">Biden\u2019s Economic \u2018Growth\u2019 Has Always Been a Mirage<\/h2>\n<p>Before Covid, U.S. GDP reached $20.95 trillion and the Trump administration was achieving real GDP growth of <a href=\"https:\/\/fred.stlouisfed.org\/series\/GDPC1\" target=\"_blank\" rel=\"noreferrer noopener\">about 2.8 percent<\/a> annually. Had that rate of growth continued, it would today yield a real GDP of $23.56 trillion. The United States is not close to that number. In fact, first-quarter 2024 GDP reflects annual growth of less than 2 percent from the pre-Covid GDP.<\/p>\n<p>Now, if the U.S. economic situation had deteriorated in 2020 because of long-term fundamental weaknesses, Biden\u2019s so-called \u201cgrowth\u201d might not look so bad. But that is not what happened. Politicians <em>artificially<\/em> closed down a strong economy. <\/p>\n<p>When the economy reopened, competent leadership would have gotten us quickly back to where we should have been all along. Instead, we got Biden and people like Jared Bernstein \u2014 Biden\u2019s <a href=\"https:\/\/www.msmnyc.edu\/news\/alumni-spotlight-jared-bernstein\/\" target=\"_blank\" rel=\"noreferrer noopener\">music major-turned-chief economic-adviser<\/a> who literally has <a href=\"https:\/\/www.msn.com\/en-xl\/news\/other\/biden-s-economic-adviser-jared-bernstein-can-t-explain-how-money-works\/ar-AA1o7i9g\" target=\"_blank\" rel=\"noreferrer noopener\">no idea what he\u2019s talking about<\/a>.<\/p>\n<div class=\"fdrlst__b89e9-22c09e81f583b82e9be0e411e9bf36c7 fdrlst__b89e9-paragraph-6\" id=\"fdrlst__b89e9-22c09e81f583b82e9be0e411e9bf36c7\"><\/div>\n<h2 class=\"wp-block-heading\">The Trump Administration Accomplished Most of the Covid Recovery<\/h2>\n<p>As it turns out, the Trump administration did most of the heavy lifting during the Covid recovery. From the depths of the Covid crisis (Q2 2020) through the end of Trump\u2019s term, real GDP rose by about $1.69 trillion in just six months. Under Biden, GDP has grown by about $2 trillion. But that took Biden 39 months. <\/p>\n<p>Real GDP does not tell the whole story because it is adjusted for inflation but not population growth. All things being equal, a society of 11 people should have a higher GDP than a society of 10. Under the Trump recovery, real per capita GDP increased <a href=\"https:\/\/fred.stlouisfed.org\/series\/A939RX0Q048SBEA\">by $5,028 in just six months<\/a>. Under Biden, per capita GDP has increased by about the same amount ($5,291) <em>in three-plus years<\/em>. The Trump administration added $2,514 per quarter back to real per capita GDP compared to Biden\u2019s $407 per quarter \u2014 six times stronger performance.<\/p>\n<p>One might argue that Trump benefited as well from the same easy-growth environment during this period. Not so. Many of the government-enforced business closures and restrictions remained in place <a href=\"https:\/\/www.cnn.com\/2020\/09\/02\/politics\/nancy-pelosi-hair-salon\/index.html\" target=\"_blank\" rel=\"noreferrer noopener\">throughout 2020<\/a>, the end of Trump\u2019s term. <\/p>\n<p>Moreover, Covid vaccines \u2014 a catalyst for much of the \u201creturn to normalcy,\u201d particularly in Democrat-controlled localities \u2014 did not become widely available <a href=\"https:\/\/www.cnn.com\/2021\/02\/12\/health\/us-coronavirus-friday\/index.html\" target=\"_blank\" rel=\"noreferrer noopener\">until well into 2021<\/a>. Thus, Trump began rebuilding GDP even while the economy remained partially closed. By contrast, Biden has benefitted from an entirely open economy for several years. In any event, even if both men received the benefit of reopenings, Trump took advantage of it and outperformed Biden six to one.<\/p>\n<div class=\"fdrlst__b89e9-00143d8ad6a7f131e04f769111c8d47b fdrlst__b89e9-paragraph-10\" id=\"fdrlst__b89e9-00143d8ad6a7f131e04f769111c8d47b\"><\/div>\n<h2 class=\"wp-block-heading\">The Airplane Has Been Losing Altitude for More Than a Year<\/h2>\n<p>Under Biden, cumulative inflation is <a href=\"https:\/\/data.bls.gov\/cgi-bin\/cpicalc.pl?cost1=1.00&#038;year1=202012&#038;year2=202403\" target=\"_blank\" rel=\"noreferrer noopener\">20 percent<\/a>. Everyone is aware of the painfully high prices for everything. The Biden administration and its media allies have <em>facially<\/em> done a better job hiding myriad other distressing economic realities. I say \u201cfacially\u201d because Americans nonetheless intuitively understand that the Biden economy is <a href=\"https:\/\/www.realclearpolling.com\/polls\/approval\/joe-biden\/economy\" target=\"_blank\" rel=\"noreferrer noopener\">awful<\/a>.<\/p>\n<p>Employment has been bad for more than a year. Last year at this time, 134.4 million Americans had <a href=\"https:\/\/fred.stlouisfed.org\/series\/LNS12500000\" target=\"_blank\" rel=\"noreferrer noopener\">full-time jobs<\/a>. That number has dropped to 133.9 million. A declining full-time workforce is not a sign of a healthy economy.<\/p>\n<p>Moreover, the true employment level has always been masked by poor labor force participation data under Biden. Labor participation is an important number because it measures the percentage of Americans who are working. By contrast, the unemployment rate does <em>not<\/em> measure the percentage of Americans <em>actually <\/em>unemployed because it excludes from its calculation unemployed people who are no longer looking for work.<\/p>\n<p>Labor force participation was trending <a href=\"https:\/\/fred.stlouisfed.org\/series\/CIVPART\" target=\"_blank\" rel=\"noreferrer noopener\">upward<\/a> under Trump before lockdowns. And, post-lockdowns, the Trump administration added 1.4 percent back to labor participation in just eight months. The Biden administration has added just 1.2 percent back to labor participation over the last 39 months. Labor participation still hasn\u2019t fully recovered under Biden and remains below its pre-lockdown level. In fact, labor participation has actually <em>declined<\/em> under Biden over the last eight months.<\/p>\n<p>According to court data, <a href=\"https:\/\/www.uscourts.gov\/news\/2024\/01\/26\/bankruptcy-filings-rise-168-percent\" target=\"_blank\" rel=\"noreferrer noopener\">total bankruptcy filings<\/a> increased by 16.8 percent in 2023. Business bankruptcies increased by a whopping 40 percent. Similar increases in U.S. bankruptcy filings were reported again in the <a href=\"https:\/\/www.uscourts.gov\/sites\/default\/files\/data_tables\/bf_f_0331.2024.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">first quarter of 2024<\/a>.<\/p>\n<p>Over the last year, six major U.S. banks have <a href=\"https:\/\/www.forbes.com\/advisor\/banking\/list-of-failed-banks\/\" target=\"_blank\" rel=\"noreferrer noopener\">failed<\/a>. In truth, bank failures are not that uncommon. However, the Biden bank failures are unique. By asset size, three of the four <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/large-u-s-banks-view-credit-suisse-exposure-as-manageable-sources\/\" title=\"Large U.S. banks view Credit Suisse exposure as manageable -sources\">largest bank failures<\/a> in U.S. history \u2014 Silicon Valley Bank, First Republic Bank, and Signature Bank \u2014 have occurred in just the last year. For context, according to a Forbes analysis, the 157 banks that failed in 2010 due to the mortgage crisis <em>combined<\/em> had less than one-half the assets of either Silicon Valley Bank or First Republic Bank alone.    <\/p>\n<p>Even the GDP numbers that Biden touts have, in reality, been rocky and poor for quite some time. Over the last <a href=\"https:\/\/fred.stlouisfed.org\/series\/A191RL1Q225SBEA\" target=\"_blank\" rel=\"noreferrer noopener\">nine calendar quarters<\/a>, the United States has experienced two quarters of <em>negative<\/em> <em>growth<\/em> (-2.0 percent, -0.6 percent), the most recent quarter of poor growth (1.6 percent), and four additional quarters below the Trump pre-lockdown average of 2.8 percent. <\/p>\n<p>Average annualized growth under Biden across all of the last nine quarters has been an anemic 1.9 percent. That is low. But it is astonishingly low in an economy that moved from partially closed to entirely open.<\/p>\n<h2 class=\"wp-block-heading\">The Parachutes Are Disappearing<\/h2>\n<p>At the same time Biden was wrecking the economy, he was also wrecking our available solutions to economic problems. The United States has a consumer economy. It depends on consumer spending to thrive. Because of Biden, consumers do not have money to spend.<\/p>\n<p><a href=\"https:\/\/fred.stlouisfed.org\/series\/MEHOINUSA672N\" target=\"_blank\" rel=\"noreferrer noopener\">Real median household income<\/a> has <em>dropped<\/em> under Biden from $76,600 to $74,580, according to the most recent data. For context, under Trump, median household income increased from $70,840 to $76,660, and that <em>includes the worst Covid period<\/em>. During his so-called \u201crecovery,\u201d Biden took $2,020 out of American paychecks. <em>Americans no longer earn enough to spend our way out of a bad economy<\/em>.  <\/p>\n<p>Before lockdowns, <a href=\"https:\/\/www.statista.com\/statistics\/246261\/total-personal-savings-in-the-united-states\/\" target=\"_blank\" rel=\"noreferrer noopener\">personal savings<\/a> in the U.S. increased each year under Trump from $746 billion in 2016 to $1.2 trillion in 2019. Personal savings peaked at $2.7 trillion in 2020 during lockdowns. Under Biden, savings have plummeted below <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/doesnt-take-a-genius-to-figure-this-out-jim-jordan-says-joe-bidens-welfare-means-unfilled-jobs\/\" title=\"\u2018Doesn\u2019t Take A Genius To Figure This Out\u2019: Jim Jordan Says Joe Biden\u2019s Welfare Means Unfilled Jobs\">pre-lockdown levels<\/a> to $911 billion as Americans have tried to keep up with inflation. <em>Americans no longer have enough savings to spend our way out of a bad economy<\/em>.<\/p>\n<p>Under Biden, <a href=\"https:\/\/www.statista.com\/statistics\/245405\/total-credit-card-debt-in-the-united-states\/\" target=\"_blank\" rel=\"noreferrer noopener\">credit card debt<\/a> skyrocketed from $717 billion in 2021 to $1.13 trillion in 2023. In December 2023, credit card <a href=\"https:\/\/fred.stlouisfed.org\/series\/DRCCLACBS\" target=\"_blank\" rel=\"noreferrer noopener\">delinquency rates<\/a> hit their highest level in over a decade. Under Biden, interest rates on credit cards, auto loans, and home mortgages have hovered at <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/poll-75-percent-of-voters-disapprove-of-kamala-harriss-handling-of-border-crisis\/\" title=\"Poll: 75 Percent of Voters Disapprove of Kamala Harris\u2019s Handling of Border Crisis\">decades-long highs<\/a>. <\/p>\n<p>This means people are paying more in the future for things that they already purchased in the past, leaving them with less for future consumption. <em>Americans no longer have enough credit to spend our way out of a bad economy.<\/em><\/p>\n<p>The savings and debt trends are problematic not only going forward but also looking back. They show that Biden\u2019s growth numbers \u2014 as lackluster as they are \u2014 were artificially supported by draining savings and racking up debt. Stealing from the future is not a healthy way to maintain short-term economic \u201cgrowth.\u201d<\/p>\n<p>Even the left\u2019s preferred, albeit usually wrongheaded and always misapplied, Keynesian solution \u2014 i.e., government deficit spending \u2014 is off the table. Put aside that this is one of the things that put us in this inflationary predicament in the first place. Further, put aside that three additional American generations now know this to be true based on lived experience. The fact is that, in just three years, Biden has incurred <a href=\"https:\/\/fred.stlouisfed.org\/series\/FYFSD\" target=\"_blank\" rel=\"noreferrer noopener\">more national debt<\/a> than any other president has incurred in four full years in office.<\/p>\n<p>To compound matters, interest rates on the federal debt \u2014 like all other interest rates \u2014 have skyrocketed with Bidenflation. This year, simply paying interest on the debt will surpass national defense as the government\u2019s third-largest spending program. <em>The government can no longer spend our way out of a bad economy even in a Keynesian fantasyland<\/em>.  <\/p>\n<p>The next president will be flying east to west into severe Bidenomics headwinds.<\/p>\n<div class=\"fdrlst__b89e9-f146a9f28b05463a2037ff45af04fb37 fdrlst__b89e9-after-post-content\" id=\"fdrlst__b89e9-f146a9f28b05463a2037ff45af04fb37\"><\/div>\n<hr class=\"wp-block-separator\">    \t\t\t\t\t   \t\t\t\t\t\t\t\t\t<\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>President Joe Biden previously saw economic success following prevailing winds. Covid led to Democratic-led closures of significant economic sectors. Post-Covid, the economy surged with the transition from partial closures to full operation. A key question arises: why do economists overlook this crucial shift?<\/p>\n","protected":false},"author":2785,"featured_media":2243956,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2024\/05\/6355336039_7f6c8f7ac4_k-1-e1715119483112.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-2243955","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2024\/05\/6355336039_7f6c8f7ac4_k-1-e1715119483112.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2243955","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2785"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2243955"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2243955\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2243956"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2243955"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2243955"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2243955"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}