With the upcoming elections looming, the possibility of a rematch between former President Donald Trump and President Biden is becoming increasingly evident. As voters consider their choices, questions arise about the potential effects of Trump’s return to office on economic policies and how they compare to the current Biden administration.
Trump’s fiscal policies, notably the Tax Cuts and Jobs Act signed in December 2017, aimed to reduce corporate tax rates. Critics argued that the benefits disproportionately favored the wealthy, with approximately one-third of the advantages going to the top 1 percent, as estimated by the Tax Policy Center (TPC).
Under Trump’s “America First” trade policy, tariffs were imposed on imported steel and aluminum, particularly impacting goods from China. While the goal was to safeguard American industries, it generated tensions and contributed to price increases. Trump indicated a commitment to similar policies in a potential second term.
During Trump’s initial four years in office, job growth was historically low, with the most significant losses occurring in 2020 due to the onset of the pandemic. The unpredictable nature of the job market in a potential second term makes projections challenging, especially considering the ongoing global challenges post-pandemic.
Trump and Biden’s Impact
Despite economic challenges, the stock market performed well under both Trump and Biden. Trump’s administration loosened regulations on banks, including SVB, and overturned the Dodd-Frank law, actions that gained prominence in early 2023 when the U.S. faced a crisis comparable to the 2008 recession.
In 2023, Trump cautioned against tampering with Medicare or Social Security, though allegations of attempts to privatize Medicare emerged. Trump proposed lowering prescription drug prices in November 2020, a move that followed objections from Republicans despite his 2016 advocacy for Medicare to negotiate prices.
The COVID-19 pandemic reshaped the global landscape, leading to unprecedented challenges. Trump faced criticism for his handling of the pandemic, with statements like “I think we’re gonna be very good with the coronavirus” drawing scrutiny as the virus claimed millions of lives. President Biden, on the other hand, confronted the vaccination challenge and, subsequently, a war in Europe.
While Trump’s first term showcased both beneficial decisions and significant criticism, his consistent stance on migration remains unchanged. Many believe this could be a key factor in his potential return to the White House. The likelihood of Trump’s administration approving foreign aid is deemed low, but predicting the impact of regulations on day-to-day life remains challenging due to the dynamic changes in the global landscape over recent years.
