During CNN’s presidential debate, the economy was the first issue discussed. Joe Biden described the American economy as “in freefall,” while Trump boasted about the state of the economy during his time in office and his handling of the pandemic. Trump claimed that everything was going well, and the economy was ready to pay down the national debt before the pandemic hit. However, this is not accurate. Budget deficits actually increased under Trump due to his 2017 tax cuts, which did not generate enough revenue to cover the cuts as promised.
According to the White House Office of Management and Budget, the budget deficit increased from $585 billion to $984 billion in 2019 under Trump’s administration. After the pandemic hit in 2020, the deficit soared above $3 trillion. A Gallup poll from May showed that about 3 in 10 Americans viewed the economy as the most significant problem facing the country, with one in ten specifically pointing to the high cost of living or inflation.
During the debate, both Biden and Trump made factual errors. Biden incorrectly stated he created 15,000 jobs instead of over 15 million, a notable discrepancy when trying to emphasize his economic leadership. He also mentioned $15 for an insulin shot, which was not accurate. The out-of-pocket insulin costs were capped at $35 for older Americans on Medicare due to legislation signed into law by President Biden.
Trump’s assertion of the economy being prepared to pay down the national debt before the pandemic was also false. His 2017 tax cuts led to increasing budget deficits, not reducing them as promised. The deficit grew from $585 billion to $984 billion in 2019 and skyrocketed to over $3 trillion in 2020 after the pandemic’s onset.