The exercise of fiscal stewardship during a presidency can be a decisive element for financial stability and prosperity of a nation. I’ll attempt to critically analyze Biden’s remarks on the fiscal management of his predecessor, Donald Trump.
How Bad Was The National Debt & Economy with Trump?
Implemented policies, especially those related to finance and economy, tend to have the most far-reaching ramifications on a nation’s fiscal health, which include its national debt.
Joe Biden, the current President of the United States, in his State of the Union address, criticized the fiscal management of the Trump administration. The critique was primarily centered around the national debt which, according to Biden, “added more to the national debt than any presidential term in American history.”
This criticism came with an open challenge to “check the numbers,” affirming the confidence of his critique. Backing Biden’s argument with data, during the tenure of Trump’s presidency, the national debt observed a considerable increase. Specifically, it heightened from approximately $19.9 trillion to about $27.8 trillion. This represents a percentage increase of about 39%. This number not only verifies Biden’s claim but also sets a record in itself.
The increment in national debt during the Trump administration was higher than any other four-year presidential term. Central to this escalated national debt was Trump’s major tax cut, a fundamental policy that played a definitive role in shaping this financial scenario.
It can be inferred that the oiling of economic machinery via this tax reduction might have led to a considerable blow to the fiscal health of the nation.
This factor stands as a testament to Biden’s critique of Trump’s fiscal management.
Is it that Simple?
However, oversimplification of a complex problem can often result in flawed judgement.
Thus, it becomes imperative to consider that holding presidents solely accountable for the debt incurred during their term might be an oversimplification and unfair.
It is essential to understand that the fiscal responsibility of a country should be shared, and that the actions of the preceding administrations could also contribute to the current fiscal landscape.
In this case, a considerable portion of the debt increase during Trump’s tenure was caused by the large-scale emergency spending due to the global Covid-19 pandemic.
The relief spending, which ran into trillions of dollars, had enjoyed bipartisan support. This crucial global event was unforeseeable and required governments around the world to spend heavily in order to shield their economies from the repercussions, United States being no exception.
Moreover, another factor contributing to this are the mandatory safety-net programs such as Medicare, Medicaid, and Social Security, whose spending was unavoidable. These programs were initiated and perpetuated by previous heads of state, thereby serving as an example of past decisions affecting present circumstances. Hence, while analyzing the fiscal situation under Trump, it becomes significant to consider these factors.
However, it is also relevant to mention that the national debt has continued to increase even under Biden’s administration. The day preceding Biden’s State of the Union address, the national debt stood at a staggering $34.4 trillion, up 24% since taking office.
Therefore, while Biden’s criticism of Trump’s fiscal management holds merit, he too finds himself in a similar predicament.
My Take
The issue of national debt is far more complex than the oversimplified narratives often portrayed. Although Biden’s critique of Trump’s fiscal management is substantiated by facts, it is essential to recognize the additional factors like the Covid-19 pandemic and inherited mandates.
Fiscal responsibility must be a collective endeavor rather than focusing on the actions of a single presidency. Future administrations, including Biden’s, carry the burden of their predecessors’ decisions in addition to their own.
Therefore, managing a nation’s fiscal health and national debt continues to be a delicate balancing act.