When President Joe Biden was sworn into office in January of 2021, he was handed an economy with 6.3% real GDP growth, inflation was 1.4%, and the price of gasoline was $2.39 a gallon. That is, even though Trump’s last year in office was marred by the COVID-19 pandemic. Nevertheless, Trump steered the ship through those uncharted waters and continued to keep policies in place to help small businesses.
Fast forward one year, and real growth has slowed to just over 2%, inflation sits at a historic 8% year over year highs, and the price of gas is up over $4. New numbers released by the Bureau of Economic Analysis show that in the first three months of 2022, U.S. gross domestic product (GDP) actually shrank at an annualized rate of 1.4%.
These depressing statistics fall on Biden and Congressional Democrats guided by the false belief that spending other people’s money can get you out of any mess. Congress has approved over $6 trillion dollars in new spending, mostly under the guise of coronavirus relief funding. That spending has resulted today in record inflation and depressed employment numbers. You might hear Democrats argue that the U.S. economy grew by a record high 5.7% in 2021, the fastest growth since 1982. However, inflation outpaced economic growth, wiping out any wage increases and costing Americans.
In addition, the Biden White House has released Executive Orders and regulations on everything from energy and climate, to mask mandates and immigration. Under President Trump, America became one of the largest oil exporters in the world, exporting 5.26 million barrels per day in 2016 and 8.51 million barrels per day by 2020. In Trump’s last year in office, the U.S. “exported more petroleum than it imported – marking the first time that has happened,” according to the U.S. Energy Information Administration’s February 2021 Short-Term Energy Outlook.
President Biden’s actions have depressed energy investment. He has single handedly reversed U.S. oil output, leaving Americans at the mercy of OPEC and higher gasoline prices which amounts to a large new tax paid by the majority of Americans. America’s return to being energy dependent is a real national security threat, not just for us but our European allies too, who now find themselves increasingly squeezed in the region.
Biden would be wise to quickly put in place President Trump’s agenda for the economy, border, and energy. President Biden should take these steps now, announce a moratorium on all new regulations, and work with Republicans to bring back the Trump-era economic boom.
Bob Carlstrom is President of AMAC Action