Former President Donald Trump wrongly stated inflation is “probably the worst in our nation’s history” during Tuesday’s debate with Vice President Kamala Harris—repeating the false claim he frequently makes to criticize President Joe Biden’s economic policies, though inflation has been higher than usual in recent years.
US Vice President and Democratic presidential candidate Kamala Harris (R) shakes hands with former ... [+]
Calling inflation a “country buster,” Trump said “we have inflation like very few people have ever seen before, probably the worst in our nation’s history” when asked if Americans are better of than they were four years ago.
Inflation has been far worse under Biden than Trump, rising 19% during the first 42 months of Biden’s term versus 6% during the same period in Trump’s term.
Trump has repeatedly exaggerated inflation levels under Biden, claiming it’s the worst it’s ever been, and while inflation did peak at a four-decade high of 9.1% in June 2022, it rose to more than 14% in the 1980s, 11.1% in 1974, 10.9% in 1942 and 17.8% in 1917.
Inflation has since fallen to 2.9% year-over-year as of July, the lowest level since March 2021, and rose 0.2% from June—a slide President Joe Biden has often touted, though annual inflation still remains above the 2% target set by the Federal Reserve.
Some economists have noted presidents themselves can’t really be solely blamed for inflation, since it’s often a worldwide phenomenon caused by a variety of factors, including the independent Federal Reserve’s influence over interest rates, though at the same time, presidential fiscal policies (such as pandemic stimulus packages under both Trump and Biden) can be among the factors that contribute to inflation.
Trump has cited the tie-breaking Senate vote Harris cast to advance the American Rescue Plan Act in blaming her for inflation—many experts agree the post-pandemic economic stimulus packages signed by Trump and Biden contributed to inflation by leading to a spike in demand while supply chains were still hampered by the pandemic, but the supply chain shortages, coupled with the Russia-Ukraine war, were more significant factors.
Harris has promised to tamp down on “price gouging” if she’s elected, as the Biden-Harris administration has sought to blame inflation partly on what Democrats have referred to as “greedflation,” accusing companies of selling a smaller amount of goods for the same price. Some research (such as a study by the Federal Reserve Bank of San Francisco) shows that markup patterns over the past three years were on par with previous recoveries. Some economists also say general cost-reduction mechanisms could be counterproductive, and price-gouging restrictions are unnecessary as inflation has cooled.
Trump has pitched higher tariffs on imported goods—especially from China—as well as lower taxes and more energy production. Most experts believe Trump’s tariff proposals would lead to an increase in costs and generally hurt the economy, in part by contributing to a decrease in consumer spending, increase in unemployment rates and slower economic growth, according to an analysis by the nonpartisan think tank the Peterson Institute for International Economics. Some 56% of economic experts polled by the Wall Street Journal also believe inflation would be worse under Trump than Biden, while 16% said it would be better and the rest said there would be no difference (the newspaper polled 68 experts in early July). Those who believe it would be worse primarily cited Trump’s tariff policies and his promise to deport all undocumented migrants, which could leave a hole in the labor market in some industries.
Harris and Trump met for the first time Tuesday in their first and only scheduled debate before Election Day, hosted by ABC News, in what’s widely considered the most consequential night of the 2024 campaign.
81%. That’s the share of registered voters who say the economy is “very important” to their vote in the 2024 election, more than any other issue, according to an Aug. 26-Sept. 2 Pew Research survey. The majority, 55%, are confident Trump would make good decisions about the economy, versus 45% who said they’re confident in Harris.
Harris has centered her economic proposals around boosting the middle class, including plans to tackle the rising cost of groceries by tamping down on “price gouging,” expanding tax credits for low- and middle-income families and ending taxes on tips—a policy Trump also endorses and initially proposed. The agenda is largely reflective of Biden’s policies, but is strategically vague in order to avoid attacks from the business community and instead garner its support, according to The New York Times. Trump, meanwhile, has centered his economic agenda around raising tariffs and cutting regulations and taxes, such as the corporate tax rate.
What To Know About Kamala Harris’ Economic Agenda Ahead Of Tonight’s Debate (Forbes)
CPI Inflation Comes In At 2.9%—Better Than Expectations With Interest Rate Cuts In Focus (Forbes)
Trump Claims U.S. Inflation Is The Worst It’s Ever Been—Here’s Why He’s Wrong (Forbes)