The Biden Administration is telling us the economy is doing great and we’re better off than ever. But a new report from the Wall Street Journal just showed us a different story. Since Biden took office, household net worth has dropped, which is very different from the financial stability many people enjoyed under President Trump.
In a comparison between the economic impacts of the Trump and Biden administrations, the report by the Wall Street Journal analyzed changes in household net worth from the start of President Biden’s administration compared to those seen during Trump’s presidency- with former President Donald Trump’s tenure showing significantly more favorable outcomes for American families.
The findings are telling, while nominal household net worth rose by 19% through Biden’s first three years in office, this figure compares to the 23% increase seen during Trump’s first three years, excluding COVID, which makes sense given the once in a lifetime event it caused. Nominal household net worth does not factor in inflation.
The real story of Americans net worth becomes apparent when adjusting these figures for inflation. Under Biden, American households saw their net worth increase by a meager 0.7% after accounting for inflation. In stark contrast, during Trump’s first three years, inflation-adjusted household net worth surged by an impressive 16%.
The difference can be largely attributed to the dramatic rise in inflation under Biden’s tenure in the White House. At the time of Biden’s inauguration in January 2021, year-over-year inflation was a manageable 1.4%. However, the Biden administration’s handling of the economy, marked by substantial government spending and compounded by global supply chain disruptions due to the COVID-19 pandemic, led to inflation peaking at a staggering 9.1% in June 2022 – the highest in 40 years.
This surge in inflation has eroded the real value of any nominal gains in household net worth, leaving American families financially stagnant under Biden. In contrast, the Trump administration managed to foster significant real wealth growth for households, highlighting a period of economic strength and stability.
The data underscores a clear narrative: Trump’s economic policies lead to robust growth in household wealth, even when inflation was considered. Biden’s tenure, however, has seen inflation drastically undercut any nominal gains, leaving American families with virtually no real increase in their net worth.
Even worse, if you factor in other forms of inflation that the government does not calculate such as cost of borrowing for your home, car and personal loans, Americans are dealing with deep cuts in their overall household wealth.
As the 2024 election looms on, these economic realities present a compelling argument for a return to the policies that delivered tangible financial benefits for American households during Trump’s presidency.
