Who is Responsible for Inflation? Blame Games between Trump and Biden in Heated Debate

For the first time since 2020, Joe Biden and Donald Trump, running for the post of American president, had a heated debate on June 27. Due to the rules controlling discussions, the contentious discussion was spared the near-constant interruptions that plagued their prior sessions. Biden, who began the discussion with a hoarse voice, faltered at times, claiming that his administration had “finally beat Medicare.

“As per the news, Biden informed reporters that he was experiencing sore throat during a visit at Waffle House following the debate. The primary concern for American consumers is inflation, which was also the first topic of discussion at Thursday’s presidential debate between former President Donald Trump and President Joe Biden. The candidates’ first discussion topic was the status of the American economy. 

Who is Responsible for Inflation?

The first debate between US President Joe Biden and US President Donald Trump in the 2024 campaign has brought attention back to their differing economic histories while in office. Though both Biden and Trump could cite impressive economic results in certain places, surveys have repeatedly indicated that people had greater faith in the Republican’s capacity to address economic and living expenses. In a poll conducted last month by ABC News and Ipsos, 46% of respondents said they trusted Trump’s economic judgment, compared to 32% who said they trusted Biden. Regarding inflation, Trump had a 44 percent to 30 percent advantage against the Democrat.

Inflation under Biden’s presidency has been far greater than during Trump’s, despite the fact that many of the causes of the high costs, such supply chain disruptions brought on by COVID, were outside his control. The price increase since Biden took office is above 19%. According to the US Bureau of Labor Statistics, the average cost of a gallon (3.8 liters) of gasoline increased from $2.33 to $3.76 between January 2021 and May of this year. A loaf of bread went up from $1.55 to $1.97, while a dozen eggs went up from $1.47 to $2.70. Prices had only increased by around 5% at a comparable juncture in Trump’s term.

• America’s Reaction to Trump-Biden Debate

How is the economy going for Biden?

While in office, Biden’s economic record has been strong; nonetheless, the president has struggled to persuade consumers sick of inflation that his “Bidenomics” strategy is beneficial to them. According to surveys, people are more concerned about how much prices have increased over the past three years than they are about how slowly costs are rising right now. Recalling the kitchen-table economics he experienced growing up in the northern Pennsylvanian city of Scranton, Biden positioned himself as a defender for middle-class and working-class Americans on Thursday.

He has also talked about bringing down the cost of prescription drugs, credit card fees, and bank overdraft fees, and getting rid of “junk fees,” which are hidden costs that often get passed over to customers without their knowledge when they pay their cable bill, book a hotel room, or purchase concert tickets. During the first year of Biden’s administration, prices increased considerably. Even though the economy was beginning to recover from the COVID-19 epidemic in early 2021, Biden claimed that Trump left him in charge of a collapsing economy. Economists believe that policies implemented by both leaders caused inflation.

National debt

As per the Committee for a Responsible Federal Budget, Trump contributed $8.4 trillion to the national debt, which comprised $3.6 trillion from COVID relief, $2.5 trillion from tax reform measures, and $2.3 trillion from increases in expenditure.

Jobs

Both Trump and Biden can point to having led robust labor markets. January of last year had the lowest level of unemployment in 53 years, at 3.4%; it has been below 4% for all but one month since then. With 2020 excluded, Trump also presided over a period of low unemployment, with the number of unemployed people falling to 3.5 percent in late 2019. 

There are around 15.7 million more jobs in the economy under Biden. Trump, on the other hand, departed office having eliminated about three million jobs, but the pandemic distorted that number. Even prior to the outbreak, however, employment growth under Trump’s administration was slower than it was under Biden’s.

Wages

Although both Biden and Trump oversaw strong pay increases in nominal terms, inflation has caused US workers’ actual wages to fall under Biden. Under Trump, workers’ incomes grew marginally because pay growth kept up with inflation. The trend of consumer prices deviating from earnings started in March 2021 and started to reverse in early 2023. 

For American workers, there is good news: wages are once again rising. Although they haven’t yet returned to where they were at the beginning of Biden’s presidency, real salaries increased by 0.5 percent in May over the prior year.

What economic policies does Trump propose?

Trump, who has made the economics a central platform of his reelection campaign, has blamed Biden for persistent inflation and uncontrollably high interest rates. He highlighted the wonderful times that Americans had when he into office in 2017, a time of comparatively stable economy that he inherited from the Obama administration and which included a lower cost of living than what Americans now yearn for, in the debate.