When President-elect Donald Trump takes over for Joe Biden next month, he will be inheriting an economy teetering on the brink of disaster. But as hazardous as the situation is, Trump may be the man best suited to defuse the ticking economic time bomb Biden is leaving behind.
While the economic situation under Biden remains far worse than the boom times of the Trump years, things have improved marginally from the worst of the inflation crisis in 2021 and 2022. Prices are still more than 20 percent higher than when Biden took office, but the monthly inflation rate has eased from the astronomical 9.1 percent seen two years ago. The stock market has also had relatively robust returns, and job numbers overall have been strong this year – although there remains ample reason to doubt the government’s official narrative on that front.
However, there are concerning signs that the slow improvement over the past few months may be short-lived. The Consumer Price Index, the measure used to gauge inflation, was 2.7 percent in November, slightly above the 2.6 percent rise in October, and could be set to get worse in the months ahead.
Government spending – the major driver of inflation – has also only continued to accelerate under Biden. Even if Trump cuts spending shortly after taking office, the dollars flowing out of the Treasury right now could have a residual effect on inflation months from now.
Inflation aside, Trump will have a number of other urgent economic fires to put out when he takes office. According to the Department of Labor, 242,000 people filed for unemployment in the first week of December, up from 225,000 the previous week. At a time when claims should be dropping significantly due to a holiday hiring surge, this rise is concerning.
Trump will also be facing a spiraling debt crisis thanks to record peacetime spending under Joe Biden. The country is expected to run a staggering $1.8 trillion deficit this year, and Biden will have added more than $7 trillion to the national debt – which now stands at over $36 trillion – by the time he leaves office. The House Budget Committee predicts that interest payments on that debt alone will total $12.9 trillion over the next decade.
As economists from both sides of the aisle warned during a recent hearing in the House, if the government fails to curb rising debts and deficits, it could shake investor confidence in the government’s ability to service its debt – likely spiraling into a full-blown financial crisis.
Americans are also facing a debt crisis on the individual level. In part due to Biden’s inflation eating into paychecks and budgets, the total amount of credit card debt held by Americans has now surpassed $1.14 trillion. Serious payment delinquencies are on the rise, and about 20 percent of credit card users are maxed out.
In July, the Bureau of Economic Analysis also revealed that the personal savings rate had fallen to its lowest level since November 2022. During Trump’s pre-COVID economy, Americans saved an average of 7.4 percent of their income. Under Biden, those rates have slipped by over half, decreasing to 3.4 percent.
All of these factors point to an economy heading toward dire straits – and the American people clearly understood those stakes in November’s election. Exit polls showed that the economy was by far the top concern for voters and that they trusted Trump more than Harris on the issue.
There are, accordingly, high expectations for the president-elect when it comes to righting the economic ship. However, Trump appears to have understood the magnitude of the task from early in his campaign and has already set plans in motion to bring inflation and the debt crisis under control.
Perhaps his most innovative move was establishing the Department of Government Efficiency (DOGE), headed by Elon Musk and Vivek Ramaswamy. The new agency is tasked with eliminating wasteful spending government-wide – with a promise to conclude its work by July 4, 2026. Musk has said he believes DOGE could make recommendations that would cut spending by as much as $2 trillion.
Trump has also made clear that he believes creating an “American energy revolution” will be key to bringing down prices, ending the inflation crisis, and accelerating economic growth. As Trump said in an interview with financial expert Dave Ramsey, “If you get the energy down, other things will follow…I believe I’ll be able to get energy down to 50 percent of what it is now in less than a year.”
Trump’s stated goal is to ensure the United States has “the number one lowest cost of energy of any industrial country anywhere on Earth,” achieved through ending the Biden administration’s delays on drilling permits and leases and boosting oil and gas production.
Perhaps no president in history inherited as difficult an economic situation as the one Trump will inherit on January 20. But all indications suggest Trump is nonetheless the best hope for turning a disaster into a triumph.
Andrew Shirley is a veteran speechwriter and AMAC Newsline columnist. His commentary can be found on X at @AA_Shirley.
Expect the first year or two of the next four years to be dedicated to undoing all the cumulative damage of the last four years. After all, there is a LOT of damage to clean up after four years of intentional destruction at the hands of the Democrats.
Yes, it can all be cleaned up, but it certainly won’t be done overnight. I don’t think anyone who’s reasonable expects all the damage inflicted on this country over the last four years will just magically go away on Day One. Most people have reasonable expectations when it comes to repairing major damage to our nation.
If employers have to hire American workers instead of illegals, $100s billions can be saved on Medicaid and Food stamps.
Everyone thinks that President DJT has 4 years he has 6 months to 2 years. The upcoming midterms could change the House and Senate. How many people are going to change their minds when the deportation starts and the MSM airs 24 hours a day about families be broken up. Stay diligent.
I just hope the majority of Americans realize that this cannot happen overnight. If something happens soon after Trump takes office, the Dems will claim it was Biden’s doing. The DOGE folks, along with EVERY single member of Congress is gonna have some splainin to do. They are ALL responsible for some of this mess our economy is in. They need to not approve ANY bills with crap in it, so, yes, they will have to actually show up and work for us for a change. And as soon as ANY RINO’s step out of line we need to put pressure on them and the moderate democrats (some who actually seem to want to try to help Trump straighten this mess out) by calling/emailing/writing/posting on social media, whatever it takes to get them working for We the People!
Kamala has lots of time on her hands now that the election is over, so why isn’t she implementing all those “joyously, aspirational” plans she campaigned on? Answer: because she never planned to! This is why our borders are open, we’re not energy independent, the cost-of-living is too high, and housing unaffordable. Biden cares more about pardoning thieves and child molesters than the American people? Will Trump change things? Yes! Because he’s about America First…
Yes, it will take a few years to fix the economic mess we’re in, but it can be done. I’m optimistic enough to believe that the GOP can increase its majority in 2026, but the right people have to seek office and stay on the economic message. They can’t stop rowing the boat.
yes but it is going to take alot longer plus he is going to need all his picks right away no nonsense from rinos
Tremendous damage has been done. Praying the American people are patient and understanding as this is going to take time to heal this damage.
The Biden mess is the biggest disaster this country has seen in a long time.
It took decades for the U.S. to become the bankrupt, massive welfare state it is today.No one,not even Trump,can fix it quickly.Any attempt to fix the country quickly would cause too much upset and possibly a depression.Few Americans have the patience to wait for a decades long solution.
Has to or more burden on US
Don’t know if you’ve noticed but MSM is already coming out with statements that Trump is now saying he won’t be able to get food prices down quickly. Same with gas. It’s going to be ugly with the MSM, but they are too stupid to realize they have already ruined their reputation and these next two years may be the end of them completely. We can hope.
You know if the House GOP and Senate GOP aren’t on board with pushing through what Trump ran on to achieve we will be in a similar 2017 majority crap_ole. Mid terms come around pretty quickly.
It is, at the same time, infuriating, sad and mystifying that the “democrats” so frequently reach for THEIR candidate at election time, without regard to how much economic damage that candidate will do. Much of it, no-doubt, is attributable to the dishonesty of the liberal press… but there are many “democrats” who DO have viable brain matter… yet, they reach for the most incompetent, dishonest and economy-destroying “candidate” on the map – in the same, instinctive way that a toddler reaches for a binky. It is unbelievable that ANYONE would vote for the senile Biden, who “campaigned” in his basement, and was never the steward of anything. I do tip my hat to the democrats who voted for Trump recently, and I hope more of you step up in the future. We need rational, strong leaders who will look after the true interests of our country and its’ citizens.
I think he probably can. The bigger question is why would anybody vote Democrat when their goal is a total Destruction of this country. That is what they want! And there are still people in this country that will vote for them. It’s like sitting on a branch in a tree while you are sawing the branch off. The Democrat Party is the epitome of evil. They are willing to burn this nation to the ground just so they can rule over the ashes
Crooked joe can’t leave soon enough! The damage he is leaving will take years to repair. He and his crime family will be able to walk and enjoy freedom. Freedom that he has denied for thousands of Americans. Government spending – the major driver of inflation – has also only continued to accelerate under Biden. It was his and kackels plan the whole time. I believe bin obama had and is causing alot of the damage also. Is it his idea that America needs punished because of the his bad ideas??
Dem-on-s are making life as difficult as possible for Trump. They figure if he fails they can get back in.
Lawyers should be able to answer this question.