Did Trump create the greatest economy ever?

Question

Before the China virus infected the world, America had the GREATEST economy ever!

nightdrot · Accepted Answer

Actually, no. While the economy, pre-pandemic, under Mr. Trump was reasonably good, it was not especially impressive.

Mostly the Trump economy looked good because the Obama economy before it was also fairly mediocre. The economy peeked at 2.1% growth under Mr. Obama and he famously said that, due to various factors, the American public would have to get used to growth rates in the 2% range. Then in Mr. Trump's first year, the economy grew at 3%.

Still, that was not all that impressive by historical standards. Indeed, the best economy overall in the post-1960s era. That is in that period when the economy began to transition from a manufacturing/extractions base to a tech/service base, was under Mr. Reagan.

Not counting the immediate post-pandemic growth rate - which was artificially distorted because it had been, in so many words, "turned off" and therefore turning it "back on" was like going from 0 to 100 in a day, the best growth rate was in 1984 under Mr. Reagan. In that year the economy grew at an absolutely eye bulging 7.6% growth rate.

Inflation under Mr. Reagan went from 14.5% in 1970 (and 13.1% in 1980 - the year Mr. Reagan was elected) to 1.1% in 1986. Mr. Trump's best showing in his tenure was marginally worse at 1.4%

Unemployment under Mr. Trump was better at 3.5%. By contrast, Mr. Reagan's was 5.1%. However, that was due to the fact that it had fallen from a much higher peek at 10.8% in 1982 - even higher than during the so-called recent Great Recession which topped out at 10.1% - and because economists in the 1980s estimated statistical full employment to be at 5%. (It being noted that statistical full employment is, due to various demographic factors, never 0%.) Thus Mr. Reagan's policies on unemployment were never pushed farther for fear of reigniting inflation.

Note that statistical full employment is that rate below which unemployment cannot fall without increasing the rate of inflation. Suffice to say, given the inflation rate hit a peacetime high in 1979 (under then President Carter) of 14.5%, the primary concern of the 1980s was to make sure inflation stayed under control. (That 14.5% inflation rate, by the way, was the highest the USA had ever experienced in peacetime since modern data had been collected. It has not been matched since.)

Bottom line, while the Trump economy was good, it was not especially impressive. Better than his predecessor Mr. Obama, but not close to Mr. Reagan's. (This again taking out the impact of the pandemic which, for statistical purposes, must be measured as an aberration. In effect, the country literally decided to "turn the economy off." That was a conscious choice that has never been made before as an historical matter. The Great Depression, for example, having occurred due to unanticipated problems and errors in the economy and policymaking.)

Put it all together. Trump best growth rate: 3.1%. Reagan best growth rate: 7.6%. Trump best inflation rate: 1.4%. Reagan best inflation rate: 1.1% (This after falling from a far higher starting point.) Trump best unemployment rate: 3.5%. Reagan best unemployment rate: 5.1% (This however, must take account of the fact that economists in the 1980s believed that statistical full employment was 5%, whereas during the Trump era they estimated it at - and still currently do - at 3%.)

Put it all together, and the Reagan economy of the 1980s beats the Trump economy of the 2010s'. In an imperfect world, the Trump economy was certainly not to be overlooked and, in retrospect, definitely is preferable to the current circumstances. However, by the long historical time horizon, it is not that remarkable. Not to be sneezed at, but the nation has done better.

exitseven · Accepted Answer

It was the best in my lifetime but maybe it was better right after WW2. My retirement account doubled in the 4 years he was in office. It never got anywhere near that in the 27 years I had it. We had record employment across all demographic groups. Wages also went up for all groups. We had low inflation and low energy prices. Industries were relocating back in the United States. The steel industry was making a comeback. The economy was so robust even shutting it down for a year did not destroy it. It was making a good return at the end of Trump's term and fell apart right after that. Now we have the aftermath of Biden's bad policies. Record gas prices, highest inflation in 45 years, wage stagnation, industries relocating offshore, and contrary to what the democrats say, we are in a recession and it is getting worse. It might turn into a full blown depression but the democrats will deny that too.

Anonymous · Accepted Answer

Presidents don't make economies. He got government out of the way to allow a great economy to develop.

12Volt · Accepted Answer

He was a great president, but he had mean Tweets, so the liberals chose brain-dead Biden.

goaded · Answer

No, Obama fixed the economy after Bush, as Democratic presidents always have to, and Trump didn't break the improvements until covid came along. Then he really f*cked up everything by, for example, not wearing a mask in public (just in private, because he knew what actually works).

jshm2 · Answer

You mean Obama. Trump did exactly nothing, but leave in place all Obama did.

Miristheiss · Answer

I do not know but it was humming along really well.

AngryCarl · Answer

Trump wasn't responsible for the economy while he was in power. He appointed Jerome Powell to run the Fed and then bitched about every decision he made.

msc545 · Answer

The only part of economics Trump understood was bankruptcy.

Anonymous · Answer

Ones who didn't vote for Trump are betrayers to USA

call_me_scar · Answer

Nope the bitch outsource 100s of thousands of jobs

Anonymous · Answer

Jabberhut is this you?

Chazmatazz269 · Answer

Hahahaha!

Did Trump create the greatest economy ever?

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