For the last few years, economists and political experts have debated the strengths and weaknesses of both President Trump’s economy and former President Obama’s economy. Not since FDR have we seen such a stark divide in economic approaches between elected leaders. In his first term, Obama pushed to rebuild post-GFC America through increased government intervention while Trump adopted an agenda focused on tax cuts and deregulation during his time in office. In this blog post, we’ll be taking a closer look at these different approaches to economics to determine just what makes them unique from one another. We’ve already mentioned some of the major differences but now it’s time to dive deeper into why they chose these policies and how their strategies fared over time.
What is Trump Economy?
Trump Economy is a term that has been coined to describe the current economic conditions associated with the Trump administration. Trump’s policies have created some positive impact on various aspects of the economy, including unemployment and stock market prices. However, Trump’s policies have also seen criticism from some observers who point to associated problems such as income inequality and environmental concerns. Trump Economy remains highly relevant in the public discourse and will undoubtedly continue to attract attention as long as Trump remains in office.
What is Obama Economy?
- Obama Economy refers to the economic policies of former President Obama and the accomplishments achieved during his presidency. Obama went into office in 2009 amidst one of the most severe recessions since The Great Depression, and quickly took decisive steps to help get millions of Americans back to work.
- Obama’s initiatives included an economic stimulus plan, reforms to financial regulations, investment in green energy, significant increases to educational spending, and healthcare reform that expanded access to health insurance for millions of Americans. Obama’s efforts were largely successful; over the course of his two terms unemployment dropped from 10% at its peak to 4.7% by the time he left office.
- Additionally, Obama oversaw 78 months of consecutive job growth – the longest such streak on record – as well as increased incomes for all races and income levels. Obama’s legacy is one that changed the US economy for the better and made life better for countless Americans.
Difference between Trump Economy and Obama Economy
President Trump came into office on the promise of a strong economy, and he certainly delivered that.
- Trump’s economic policies were often considered supply-side reforms which had both supporters and detractors. Trump also boasted a dramatic decrease in unemployment, particularly for minority groups. Unfortunately, this came with increased inequality and debt levels which analysts have suggested put future growth at risk.
- By contrast one of President Obama’s principal goals was to increase financial stability for individuals during the Great Recession years and beyond, by reducing foreclosures and creating job stimulus.
- He successfully improved consumer confidence through his policies and he lowered the unemployment rate from 10% to 4% over eight years – still lower than Trump’s current rate!
Ultimately, Trump’s economy will be judged on its long-term impacts; Obama’s success lies in his efforts to promote recovery from the worst recession since The Great Depression.
The U.S. economy is doing better than it was under the Obama administration, but this is largely due to Trump’s inherited monetary policy from his predecessor. unemployment rate and inflation are up, while median income and real wages have stagnated. Although Dow Jones has reached record highs during his presidency, data suggests that much of this growth has been driven by increased corporate profits rather than increases in worker productivity. The stock market does not represent the entire economy contrary to popular belief. The benefits of the Trump economy have not trickled down to middle- or working-class Americans as they have for rich Americans and corporations.”