The Americans see “the economy” as one of the most significant issues faced by the country. Of course! There was a contrasting difference between trump’s economy and Obama’s economy. But, they lack in different parts and excel in others.
- Trump’s economy was characterized by a focus on deregulation, tax cuts, and protectionist trade policies, while Obama’s economy focused on healthcare reform, infrastructure spending, and income redistribution.
- The unemployment rate and GDP growth were lower during Obama’s presidency, while both metrics were higher during Trump’s presidency.
- Trump’s economy saw a significant increase in the federal deficit, while Obama’s economy decreased during his second term.
Trump Economy vs Obama Economy
The Obama administration implemented policies to stabilize the financial sector, create jobs, and boost economic growth, such as the American Recovery and Reinvestment Act and the Affordable Care Act. The Trump administration implemented policies to reduce regulations and taxes to stimulate economic growth, such as the Tax Cuts and Jobs Act.
Trump’s economy was considered the ‘greatest economy in history’ as he claimed, although it was barely an improvement.
The economy in the first term was scarcely over zero due to the pandemic, and the initial three years of Trump’s economy was 2.5, besides a slight difference from Obama’s economy.
Besides, there was an increase in job gains until the pandemic hit, but the employment rate was not that good.
Obama’s economy had its lows and highs. Besides, in the first term, the economic growth was just 1%. And in the second term, it was 2.3%. Although, with the comparison with Trump’s economy, there is a slight difference.
As for the job gains, there was a growth in job gains in 2014 and 2015 second term of Obama. The rate continued to grow until the pandemic.
|Parameters of Comparison||Trump Economy||Obama Economy|
|First-term||The economy was barely over zero in the first term.||The economy was almost at 1%.|
|Second-Term||The economy was at 2.5%.||The economy showed progression and was at 2.3%|
|Job gains||There were 193,000 job gains a month on average.||There were 225,000 job gains a month in 2014 and 2015.|
|Unemployment rate||In the Trump economy, unemployment was low at 8.4%.||In Obama’s economy, unemployment was 3.5%.|
|Black unemployment rate||In the Trump economy, the black unemployment rate was at 5.4%, but with the hit of the pandemic, it was at its lowest at 13%.||The black unemployment rate was at 7.5% during Obama’s administration.|
|Middle-class||In the Trump economy, middle-class income showed progression.||Although, during the final two years of Obama’s administration, the middle-class income showed progression first and recovered a lot, thus Obama was credited for recovery.|
|Food stamps||Food stamps dropped to 35.7 million, ‘the lowest record ever’ in 2019 during Trump’s administration, which helped build up the economy.||Food stamps were worst as every 1 American out of 6 needed government food aid.|
What is Trump Economy?
Trump quoted his economy as one of the ‘greatest economies in history’. Although, there was a slight improvement in the growth than before. There were highs and lows in the era of the Trump economy.
But, there is no significant change in the economy at all. So, it cannot be regarded as the greatest economy.
In the first term of the Trump economy, it barely crossed 1% in growth; excluding 2020, it went 2.5%. Thus, the Trump economy spiked up almost more than the Obama economy.
As for the job gains, the gain continued to spike up until the hit of the pandemic. It peaked in 2018, but there is an eminent job loss with the hit of the pandemic. Furthermore, 4.7% of jobs returned in August.
In late 2019, it nearly dropped 3.5% in late 2019 and stayed till early 2020. Besides, Under trump, the employment rate was considerably low at 4.3. With the pandemic hit, it declined further.
It reached 19.7%. Furthermore, it came back to 8.4%, but it is not high either.
Another claim by Trump was that he had done much more for African Americans. Although, the black unemployment rate hit rock bottom in 2019 with the lowest level ever recorded in history.
But, under Trump, it was 7.5%, which was not at all much higher. Again with the hit of the pandemic, it reached 13%.
Moreover, U.S. stocks fell to 30% due to the pandemic but rose again in the summer of 2020. Although, the stock market doesn’t embark on the economy even though it is one of trump’s favourite indicators.
With Trump’s administration, the number of Americans on food stamps declined. Thereby resulting in more job gains in 2020. Indeed, the rate dropped to 35.7 million in 2019.
Furthermore, factories were to be recovered, but they didn’t gain as much employment as they should have. And as for home prices in the U.S. are alarmingly high.
What is Obama’s Economy?
The natives acknowledged the influence of Obama on the economy. Although, it could have been far better than before. As it had been, there were highs and lows in different aspects.
In the first term of Obama’s presidency, around 1% growth was shown in the economy. Meanwhile, in the second term, it was 2.3%. Thus, that couldn’t be considered a great economy, but it was good enough.
As for job gains, it was a peak with more than 225,000 jobs a month in 2014 and 2015 second term of Obama. Furthermore, it started to grow since then, but it got hit due to the pandemic.
Moreover, the unemployment rate is still declining since 2009. Hence, that aspect lacked a lot as the unemployment rate affects the economy highly. But, black unemployment decreased significantly during Obama’s administration, although it was still at 7.5%.
During the last two years of Obama’s administration, middle-class income showed growth. Thus, he was credited for progress in the recovery of middle-class income.
Besides, the food stamp showed a great recession in Obama’s administration as every 1 out of 6 Americans were dependent on government food aid. With the end of Obama’s presidency, it slightly showed some progress.
It also showed a manufacturing recession at the end of Obama’s second term.
Lastly, Home prices have been rising since 2011 and still showing progression in prices. Even pandemic hits didn’t bother the house prices slightly.
Main Differences Between Trump Economy and Obama Economy
Trump’s economy and Obama’s economy are always controversial debate topics as voters are always concerned about the economy of the country. Thus, it is considered an eminent factor during and after administration. Both have their highs and lows, but there’s a significant difference between them.
- Trump’s economy in the first term was barely over zero. Meanwhile, Obama’s economy was over just 1%.
- Trump’s economy was at 2.5% in the initial three years, excluding 2020. On the other hand, in the second term of Obama’s administration, growth rose to 2.3%.
- Under Trump’s administration, 193,000 jobs were added on average. In contrast, In 2014 and 2015, Obama’s second term, 225,000 jobs a month were added, which grew the economy.
- In the Trump economy, unemployment was low at 8.4%. Meanwhile, in Obama’s economy, unemployment was 3.5%.
- In the Trump economy, the black unemployment rate was at 5.4%, but with the hit of the pandemic, it was at its lowest at 13%. In contrast, the black unemployment rate was at 7.5% during Obama’s administration.
- In the Trump economy, middle-class income showed progression. Although, during the final two years of Obama’s administration, the middle-class income showed progression first and recovered a lot, thus Obama was credited for recovery.
- Food stamps dropped to 35.7 million, ‘the lowest record ever’ in 2019 during Trump’s administration, which helped build up the economy. Meanwhile, Food stamps were worst as every 1 American out of 6 needed government food aid.
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Chara Yadav holds MBA in Finance. Her goal is to simplify finance-related topics. She has worked in finance for about 25 years. She has held multiple finance and banking classes for business schools and communities. Read more at her bio page.