Trump Slams Biden: “Inflation is Destroying Our Country”

Atlanta, Georgia — In a heated debate on Thursday, former President Donald Trump accused President Joe Biden of poorly managing the US economy, highlighting the sharp rise in inflation as a critical issue in the upcoming November presidential election.

“He has not done a good job. He’s done a poor job,” Trump stated during the CNN-hosted debate in Atlanta. “And inflation is killing our country. It is absolutely killing us. I gave him a country with essentially no inflation. It was perfect. It was so good, all he had to do is leave it alone. He destroyed it.”

Biden responded by defending his record, asserting that Trump had left the US economy in a dire state. “There was no inflation when I became president. You know why? The economy was flat on its back,” Biden said, emphasizing that his administration had created “millions” of new jobs, including in minority communities.

Inflation: A Key Issue

According to a recent Gallup poll, Americans have consistently named inflation or the cost of living as “the most important financial problem facing their family” over the past three years. Another Gallup poll revealed that 46 percent of adults in the US have “a great deal” or “a fair amount” of confidence in Trump to handle the economy, compared to just 38 percent who feel the same about Biden.

Surge in Inflation

US consumer inflation did surge after Biden took office, reaching a multi-decade high in 2022. This spike was driven by a post-pandemic supply crunch and Russia’s invasion of Ukraine. In response, the US Federal Reserve raised its key lending rate from nearly zero to between 5.25 and 5.50 percent — its highest level in two decades.

Higher interest rates are intended to cool the economy by increasing borrowing costs for consumers and businesses, affecting everything from mortgage rates to auto loans. While inflation has eased since the Fed began hiking rates, it remains above the long-term target of two percent, keeping the central bank cautious.

Since January 2021, when Biden took office, consumer prices have risen by about 20 percent, according to the Labor Department’s consumer price index (CPI) inflation calculator. In contrast, prices rose by less than six percent during the same timeframe under Trump.

Future Economic Policies

Despite Congress giving the Fed the mandate to tackle inflation, it remains a challenging topic for Biden as he seeks to bolster his economic record before the election.

Trump has proposed several policies that he claims will improve the economy, including extending tax cuts from his previous administration, severely restricting immigration, deporting illegal immigrants, and imposing tariffs on all US imports. JP Morgan economists warn that these policies would likely be inflationary by increasing prices, putting upward pressure on wages, and adding to the national debt.

Election Impact

The outcome of the presidential election and control of Congress will significantly impact the path to achieving the Fed’s two percent inflation target. If Biden is reelected but faces a divided government, the potential for significant fiscal policy changes is limited. Conversely, if Trump returns to the White House with a divided government, he may struggle to implement his fiscal agenda.