Tuesday, September 29, 2020

Steady growth to record crash: How pandemic recast Trump's economic record

 

Stacked against his campaign promises from 2016, Trump's record was mixed on issues including eliminating the trade deficit and locking in 3% annual economic growth.



By Howard Schneider

WASHINGTON (Reuters) - U.S. President Donald Trump and Democratic rival Joe Biden hold the first of three debates Tuesday night ahead of the Nov. 3 election, and the economy is expected to be a key topic.
At issue: What did Trump accomplish for the economy in three tumultuous years of trade wars and tax cuts? How much blame should he bear for the mass layoffs and slump triggered by the coronavirus pandemic? Can Biden convince voters he will be a better steward of the world's largest economy?

Before March, Trump had a clear argument for reelection. Record-low unemployment and rising wages were helping the less well-off, while a record stock market buoyed richer Americans.

Even at that point, however, growth seemed to be slowing as the impact of 2017's tax cut, which slashed taxes for companies, ebbed.

Stacked against his campaign promises from 2016, Trump's record was mixed on issues including eliminating the trade deficit and locking in 3% annual economic growth. (See graphic: https://tmsnrt.rs/2P4ZAuG)

From perhaps the broadest barometer - job creation - the economy under Trump actually slowed from the trend begun during former President Barack Obama's second term, before the pandemic hit.

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