The economy took center stage during the first presidential debate of the 2024 election cycle, as President Joe Biden and former President Donald Trump went head-to-head on various economic topics. With inflation, tariffs, national debt, and taxes being key points of discussion, both candidates presented their views and defended their policies.
### Inflation
Inflation has been a pressing issue, with prices rising by over 20% since the start of the pandemic and peaking in June 2022. This surge in prices has strained household budgets, while the Federal Reserve’s efforts to curb inflation have led to increased borrowing costs. During the debate, both candidates blamed each other for the price hikes and highlighted their economic achievements. Biden emphasized his work on reducing prescription drug prices and building new housing units to address housing costs, while Trump touted the economic success during his administration.
### Tariffs
Trump defended his proposal to impose a 10% tariff on imports from other countries, stating that it would not lead to higher prices for Americans. He argued that this move would make countries like China pay for their unfair trade practices, reduce the trade deficit, and strengthen the U.S. economy. However, economists estimate that such tariffs could cost the average household at least $1,700 annually.
### National Debt
The national debt has soared to $34.72 trillion, prompting questions about each candidate’s contribution to the debt. Trump approved $8.4 trillion in new debt during his term, while Biden has approved $4.3 trillion so far. While Trump claimed the country was on track to pay down debt before the pandemic hit in 2020, Biden proposed taxing trillionaires at a higher rate to generate revenue for debt reduction. Economists predict that regardless of the election outcome, the national debt will continue to grow.
### Taxes
The discussion on taxes revolved around the Trump-era 2017 Tax Cuts and Jobs Act, set to expire in 2026 if not extended. Trump hailed the act as the largest tax cut in history, particularly highlighting the reduction in corporate tax rates. He argued that this cut incentivized companies to repatriate funds and boost the economy. In contrast, Biden criticized the tax cuts for primarily benefiting the wealthy and reiterated his call for higher taxes on the ultra-wealthy to create a fairer tax system.
The debate showcased the divergent economic visions of the two candidates, with Biden focusing on addressing income inequality and promoting social welfare programs, while Trump emphasized deregulation and tax cuts to stimulate economic growth. As voters grapple with economic concerns such as inflation and national debt, the candidates’ contrasting approaches will play a crucial role in shaping the future economic landscape of the country.
In conclusion, the economic issues discussed during the debate underscore the importance of a robust economic policy framework that addresses key challenges while fostering sustainable growth and prosperity for all Americans. As the election season progresses, voters will need to carefully evaluate each candidate’s economic proposals and their potential impact on the nation’s financial well-being.
