The economy is set to be a pivotal issue in the 2024 presidential election, highlighting the stark differences between President Joe Biden and former President Donald Trump.
Consider the American economy as a bag filled with a variety of policies and economic indicators, with inflation being a prominent one. Although inflation has retreated from its 40-year high in 2022, it remains a pressing concern for many families. While presidents cannot directly control prices set by companies, their policies significantly influence economic conditions.
Americans continue to grapple with the rising costs of groceries. President Biden has initiated a public campaign urging companies to lower prices. The White House has reported some success, claiming that major retailers like Target, Walmart, and other grocery chains have responded positively to the president’s requests.
On the other hand, former President Trump has outlined a different approach. “We’re gonna start with drill baby drill,” Trump stated. “We’re gonna get those prices way down.”
Housing and interest rates are also major economic concerns as the election approaches. President Biden has proposed new government assistance programs to help home buyers cope with high interest rates. Conversely, Trump has openly considered replacing Federal Reserve Chairman Jerome Powell with someone more inclined to lower interest rates.
Tax policy is another critical area where the candidates differ. Howard Gleckman, a tax policy expert with the Urban Institute, highlights the looming tax debate the next president will face, as the
Trump-era tax cuts are set to expire in 2025. Trump advocates for extending these tax cuts, thereby maintaining the current tax structure. In contrast, Biden proposes tax increases for individuals earning over $400,000 annually and plans to enhance the child tax credit.
“If the tax cuts and jobs act expires, it will go back to $1,000 [per year],” Gleckman explained regarding the child tax credit. “Biden is talking about bringing it back to closer to $3,700.”
Additionally, Biden has focused on reducing healthcare costs, advocating for the extension of the Affordable Care Act and measures to lower prescription drug prices. Trump’s approach includes reducing regulations and promoting competition in the healthcare market to drive down costs.
Both candidates also address job creation, but with different strategies. Biden emphasizes investments in clean energy and infrastructure to create new jobs, while Trump focuses on deregulation and tax cuts to stimulate business growth and employment.