In a revealing insight into the intricate dynamics of the presidential transition, President Joe Biden, on his way out of office, revealed in an interview with USA Today published on January 8 that President-elect Donald Trump privately praised Biden’s economic accomplishments during their recent meeting at the Oval Office. This private commendation sharply contrasts with Trump’s public disapproval of Biden’s fiscal policies.
“I was very candid with Trump when he got elected,” Biden shared with USA Today’s Susan Page in his exclusive interview. “I extended an immediate invitation to him to the White House. We spent two hours together.” During their confidential discussion, Biden revealed that Trump “gave high praise for some of the economic strides I had made” and “believed I was leaving with a commendable record.”
A week after Trump’s November 2024 victory over Vice President Kamala Harris, the two-hour dialogue covered a wide range of economic policy issues. Biden, who had bowed out of the race after a tough debate performance, insisted that he would have won reelection had he stayed in the contest.
Under Biden’s presidency, economic data presents a nuanced image of recovery and challenges. His administration sustained a consistent GDP growth rate of 2.5% yearly, while the stock market yielded annualized returns of 12.6%. However, this performance lagged behind the 16.3% returns observed during Trump’s previous term.
The crowning achievement of the Biden administration, the $1.9 trillion American Rescue Plan, helped avert a recession and bolster growth, although it faced scrutiny for potentially contributing to inflation. Public sentiment on the economy remained lower compared to the Trump era, with Americans voicing ongoing concerns about the cost of living. The personal savings rate also saw a decline during Biden’s tenure.
The Bipartisan Infrastructure Deal was another significant legislative accomplishment under Biden. The president tactically directed many of these investments toward states controlled by Republicans, making the projects harder to reverse. “It’s the way to lock in a changed economic policy,” Biden explained. The infrastructure initiative incorporated significant investments in climate change mitigation, standing in contrast to Trump’s approach and his withdrawal from the Paris Climate Agreement.
On the employment front, both administrations demonstrated strong performance. The labor market under Biden rebounded from pandemic-era disruptions, while Trump’s previous term had achieved a 50-year low unemployment rate of 3.5%. However, inflation surfaced as a key differentiating factor, with Biden’s term witnessing an annualized rate of 5.4% compared to 1.9% during Trump’s presidency.
The economic policy of the Biden administration encompassed significant legislative initiatives such as the CHIPS Act, which allocated $280 billion to enhance domestic semiconductor manufacturing and research. The Inflation Reduction Act provided $437 billion for climate and healthcare investments. Biden’s proactive antitrust enforcement and focus on full employment benefited disadvantaged groups, resulting in historically low unemployment rates among minorities.
In terms of fiscal policy, both administrations witnessed substantial increases in federal debt, although Biden’s term saw a more marked expansion. His proposed tax hikes on high-income earners and corporations contrasted with Trump’s advocacy for extending the 2017 tax cuts.
In the interview, Biden pointed to his administration’s inability to effectively counter misinformation as one of his presidency’s greatest disappointments. Despite legislative successes and economic advancements, this challenge of effectively communicating with and winning over the American public persisted throughout his term.
Reflecting on his legacy, Biden expressed optimism about how history would perceive his presidency: “I hope that history says that I came in and I had a plan how to restore the economy and reestablish America’s leadership in the world,” he said. “That was my hope. I mean, you know, who knows? And I hope it records that I did it with honesty and integrity, that I said what was on my mind.”
