page_title: Economic policy of Donald Trump administration
section_title: 2017-2019
hierarchical_section_title: Economic policy of Donald Trump administration / Overall evaluations / 2017-2019
caption_attribution_description: English: Economic scorecard comparing Trump and Obama presidencies
context_page_description: The economic policy of the Donald Trump administration is characterized by individual and corporate tax cuts, attempts to repeal the Patient Protection and Affordable Care Act, trade protectionism, immigration restriction, deregulation focused on the energy and financial sectors, and responses to the COVID-19 pandemic.
  A key part of President Trump's economic strategy during his first three years was to boost economic growth via tax cuts and additional spending, both of which significantly increased federal budget deficits. The positive economic situation he inherited from President Obama continued, with a labor market approaching full employment and measures of household income and wealth continuing to improve further into record territory. President Trump also implemented trade protectionism via tariffs, primarily on imports from China, as part of his "America First" strategy. According to the Congressional Budget Office, the number of Americans without health insurance increased under Trump, while his tax cuts were projected to worsen income inequality.
context_section_description: Economist Justin Wolfers wrote in February 2019: "I've reviewed surveys of about 50 leading economists--liberals and conservatives--run by the University of Chicago. What is startling is that the economists are nearly unanimous in concluding that Mr. Trump's policies are destructive." He assigned a letter grade of A- to the economy's performance overall, despite "failing grades" for Trump's policies, including an "F" grade for trade policy, "D-" for fiscal policy, and a "C" for monetary policy. One July 2018 study indicated Trump's policies have had little impact on the U.S. economy in terms of GDP or employment.
  Writing in The New York Times, Steven Rattner explained in August 2018 that "Yes, the economy is continuing to expand nicely, which all Americans should celebrate. But no, there’s nothing remarkable in the overall results since Mr. Trump took office. Most importantly, there is little evidence that the president’s policies have meaningfully improved the fortunes of those 'forgotten' Americans who elected him." Rattner explained that job creation and real wage growth had slowed comparing the end of the Obama administration with an equal period elapsed during the Trump administration; that the 4.1% real GDP growth in Q2 2018 was increased by non-recurring trade contributions and was exceeded during four quarters of the Obama Administration; that 84% of the benefits of the Trump tax cuts would go to businesses and individuals with incomes greater than $75,000 (thus increasing inequality); that the tax cuts and spending increases were forecast to increase the budget deficit in 2019 to nearly $1 trillion, double the previous forecast; and that half the benefit of the tax cuts for the typical middle-class worker in 2018 would be offset by higher gas prices. Rattner expanded his analysis in December 2018, explaining further that the debt to GDP ratio was on a much higher trajectory compared to the forecast when Trump took office, with as much as $16 trillion more federal debt added over a decade.
  Writing in the Washington Post, Heather Long explained in August 2019 that: "[A] closer look at the data shows a mixed picture in terms of whether the economy is any better than it was in Obama’s final years. The economy is growing at about the same pace as it did in Obama’s last years, and unemployment, while lower under Trump, has continued a trend that began in 2011." Nominal wages, consumer and business confidence, and manufacturing job creation (initially) compared favorably, while government debt, trade deficits, and persons without health insurance did not.
  Writing in the Washington Post, Phillip Bump explained that for Trump's first term as of September 2019, performance on several key variables was comparable or below Obama's second term (January 2013 – September 2016), as follows: 1) Real GDP was up 7.5% cumulatively under Obama, versus 7.2% under Trump; 2) The total number of jobs was up 5.3% for Obama, versus 4.3% under Trump; 3) The S&P 500 was up moderately more under Obama at +39.9% versus Trump at +34.2%; 4) The unemployment rate fell 2.9 percentage points under Obama versus 1.2 points under Trump; and 5) the national debt was up 10.5% under Obama, versus 15.1% under Trump.
  Factcheck.org reported in November 2019 that: "There’s no question the economy has been strong since Trump took office, but it was also strong before he took office, a fact he continues to distort as he falsely puffs up his own record." For example, Trump promised real GDP growth of 4-6% per year, but only achieved 2.9% growth in 2018, the same rate as 2015. Further, job creation was slower under President Trump than comparable periods at the end of the Obama Administration. Many of Trump's claims about unemployment, labor force participation, and median household income were also false or exaggerated.
  Writing in The New Yorker, John Cassidy described the opportunity costs of Trump's tax cuts: "Some of the debt that is being issued to pay for the tax cut could have been used to finance investments in infrastructure, renewable energy sources, 
caption: Economic scorecard comparing Trump and Obama presidencies. Refer to sources on the detail page.
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