All that remains is for President-elect Donald Trump to put his name on it if he wishes.
Mr. Trump won the White House largely because of voters’ dissatisfaction with high prices and a sense that major changes were needed in the United States. But when Trump takes office in January, he will inherit an economy poised for growth.
Unemployment is low, inflation is easing, and President Joe Biden’s administration is preparing a ready-made list of infrastructure projects that could go from theoretical to practical in the coming years. Thousands of projects are underway that will take years to complete, including a TSMC computer chip plant in Arizona, a new Hyundai electric vehicle plant in Georgia, and a modernized I-375 in Michigan.
All of this means that Trump, not Biden, may be the one to tell the American people that he built the country back better. That is if he decides to proceed with the project.
Biden himself acknowledged last week that the economic impact of his policies would be felt after his term ends in January.
“While much of the work we have done is already being felt by the American people, much of it is not and will be felt over the next 10 years,” he said in a speech in the Rose Garden. “It’s going to take some time, but it’s over. The road ahead is clear.”
Trump wants to reverse Biden’s policies, but construction is already underway
On the campaign trail, Mr. Trump blasted Mr. Biden’s record but offered few details about what initiatives he might eliminate. President Trump said in September that he would “cancel all unspent funds under the misnamed Inflation Control Act” and that tariffs would be more effective for manufacturing than the funds provided by CHIPS and the Science Act, according to Joe Rogan. Said on the podcast.
But Biden aides privately told The Associated Press that Trump, like Republicans in Congress who voted against the planned projects, celebrated factory openings and infrastructure improvements in their districts. He said he looks forward to continuing the program and praising Biden’s accomplishments.
The administration spent millions of dollars installing road signs promoting Biden’s role in the project. All Trump has to do is rename them with his name. Biden aides say Trump will support states he wins this year’s elections even if Republicans try to scrap some provisions in order to partially fund their own tax cuts. I am confident that we are not going to cut the program.
When asked about this possibility, Trump and Vance transition spokeswoman Caroline Leavitt said, “The American people re-elected President Trump by a wide margin and delivered on the promises he made during the campaign.” I gave him the mission to do so.” He will deliver. ”
Biden White House Chief of Staff Natalie Quillian said the administration’s programs are already starting to make a positive difference in the economy.
“We have already announced investments in 70,000 infrastructure and clean energy projects, spurred nearly $1 trillion in private sector investment, lowered prescription drug prices, and created 1.6 million construction and manufacturing jobs. It created jobs,” she said. “In the coming months, we will continue to play the tapes to ensure that Americans continue to benefit from this president’s policies for years to come.”
Trump enters the White House as the economy improves
President Trump is also inheriting an economy that is increasingly healthy in many ways, despite his claims that the situation is dire.
Republicans won the election because the unemployment rate was at a healthy 4.1%, inflation was at 2.4%, and the Federal Reserve lowered benchmark interest rates in a way that could support further growth. Federal Reserve Chairman Jerome Powell summed up the situation last week by saying the economy was “strong across the board.”
However, voters felt the economy was weak. It penalized Democrats for inflation reflecting post-pandemic supply chain challenges, the impact of government aid that spurred job growth, and Russia’s 2022 invasion of Ukraine, which caused soaring energy and food prices.
However, voters appear to be more concerned about changes in the price level over the past four years than the overall rate of inflation. AP VoteCast, an extensive survey of more than 120,000 voters, found that nearly 9 in 10 cited inflation as an important factor in their election choice this year, with Mr. They won a clear majority.
Still, economists who have advised and worked with Trump in the past felt the economy was not as strong as top-line numbers suggested. Trump himself emphasized that high levels of government debt have been a driver of growth, even though he himself showed little appetite for deficit reduction during his last White House tenure.
“Government spending is what supports the economy,” said Joseph LaVogna, who served as chief economist at the White House National Economic Council during the Trump era.
LaVogna also pointed out that much of the recent job growth has come from government and health care jobs, rather than from manufacturing or other commercial sectors.
Possible pressure to embrace renewable energy and EVs
There is a perception among some Republicans that the energy tax credit, part of the Anti-Inflation Act, is a positive and should be retained. In August, 18 House Republicans sent a letter to House Speaker Mike Johnson urging him to preserve the tax credit.
Economists supporting President Trump also say EV sales could surge under the incoming administration, which has the backing of Tesla CEO Elon Musk.
President Trump wants to eliminate Biden’s incentives for EVs as part of the Inflation Control Act. But after gaining Musk’s endorsement, Trump said, “I’m in favor of electric cars because Elon strongly supported me.”
Stephen Moore, an unofficial advisor to Trump and an economist at the conservative think tank Heritage Foundation, said the simple change of Trump mentioning EVs takes politics out of the equation and allows the next president to focus on the goals set by Biden. stated that it is possible to achieve this.
“I think the EV industry will come back once Biden is gone,” Moore said. “Biden made EVs harmful because half the country hated him and half loved him. People who hate Biden will not in good conscience buy EVs.”
