Biden v. Trump on Economy: CNN’s Presidential Debate 2024

Introduction

The presidential debate between President Joe Biden and former President Donald Trump, hosted by CNN on June 27, 2024, marked a significant milestone in the 2024 election season. Held at CNN's studios in Atlanta, Georgia, this debate underscored the state's critical role as a key battleground in the race for the White House. Georgia's status as a swing state added a heightened sense of urgency and importance to the proceedings, as both candidates aimed to sway undecided voters.

CNN, a seasoned host of presidential debates, utilized its extensive experience to ensure a fair and structured discourse. The standoff featured several rule changes designed to promote a more orderly exchange. Each candidate had two minutes to answer questions, with one minute allocated for responses and rebuttals and another at the moderators' discretion for follow-up clarifications. A noteworthy modification was the introduction of microphone controls, where only the speaking candidate's microphone would be active to minimize interruptions. This change aimed to address issues observed in previous debates where frequent interruptions had disrupted the flow of discussion.

The debate, co-moderated by CNN anchors Dana Bash and Jake Tapper, was broadcast live across multiple platforms, including CNN International, CNN.com, CNN Max, and CNN Espa?ol, reaching a global audience. The absence of a studio audience and the prohibition of pre-written notes, props, or contact with campaign staff underscored the debate's focus on the candidates' direct engagement with each other and the issues at hand.

As the candidates took the stage, the debate promised to be a pivotal moment in the rematch for the nation’s highest office, with each candidate striving to present a compelling case to the American people with just over four months remaining until Election Day.

Economic Concerns at the Forefront

Tapper opened the discussion by foregrounding the economy, reflecting its critical importance to voters. The economic problems, echoed earlier in a Pew Research Center survey conducted in May 2024, revealed that 84% of Republicans and 63% of Democrats viewed strengthening the economy as a top priority for the year (Pew Research Center) (Pew Research Center). Inflation remained a significant concern, with 62% of Americans identifying it as "a problem" (Pew Research Center). Additionally, 72% of respondents expressed high levels of concern about rising prices for food and consumer goods, while 64% were worried about housing costs (Pew Research Center). Although the unemployment rate was less of an immediate concern, with only 25% considering it an issue, it still influenced public sentiment (Pew Research Center). Given these critical economic indicators, it was imperative to address the economy in the debate, highlighting the candidates' plans to tackle these pressing issues and aiming to reassure the electorate about their economic futures.

President Biden, inflation has slowed, but prices remain high. Since you took office, the price of essentials has increased. For example, a basket of groceries that cost $100 then, now costs more than $12; and typical home prices have jumped more than 30 percent. What do you say to voters who feel they are worse off under your presidency than they were under President Trump? – Jake Tapper’s question to President Biden

President Biden's Perspective

President Biden highlighted the challenges his administration inherited, pointing to the economic freefall during the COVID-19 pandemic and the subsequent efforts to stabilize the economy. He cited the high unemployment rate of 15% during the pandemic, a stark contrast to the pre-pandemic figures, and emphasized the recovery efforts that led to the creation of 15,000 new jobs and 800,000 manufacturing jobs. Biden’s administration also focused on reducing the price of essential goods and prescription drugs, aiming to make healthcare more affordable (Ballotpedia).

• Economic Freefall and Recovery Efforts: Biden underscored the dire economic conditions at the start of his term, with the pandemic causing significant disruptions. The unemployment rate spiked to 14.7% in April 2020, reflecting the severe impact of COVID-19 on the labor market (Bureau of Labor Statistics). The recovery efforts included substantial federal spending and legislative measures to support businesses and individuals, contributing to job creation and economic stabilization.
• Inflation and Housing Costs: Biden acknowledged the persistent issue of inflation, which had a direct impact on the cost of living for many Americans. The Consumer Price Index (CPI) data indicates that inflation rates remained elevated, with food prices and housing costs significantly increasing over the past few years (U.S. Bureau of Labor Statistics). Biden proposed measures to cap rents and build 2 million new housing units to address the housing crisis, attributing part of the inflation problem to corporate greed.
• Prescription Drug Prices: The Biden administration made efforts to lower prescription drug costs, a significant burden for many Americans. The Inflation Reduction Act of 2022 allowed Medicare to negotiate drug prices, decreasing costs for essential medications such as insulin. For example, the cost of insulin was capped at 35$ (per month) for Medicare beneficiaries starting in 2023 (Centers for Medicare & Medicaid Services).??????????

Former President Trump's Rebuttals

Former President Trump claimed that his administration had built the "greatest" economy in U.S. history before the pandemic struck. He emphasized the low unemployment rates and robust economic growth during his term, citing the tax cuts and deregulation efforts that spurred business activity. Trump criticized Biden's handling of the economy, particularly regarding inflation and the increased cost of living.??????

• Pre-Pandemic Economic Performance: Trump's administration did experience strong economic indicators pre-pandemic, with unemployment rates reaching a 50-year low of 3.5% in February 2020 (Bureau of Labor Statistics). The Tax Cuts and Jobs Act of 2017 reduced corporate tax rates to boost investment and economic growth. However, these measures also contributed to an increase in the federal deficit (Committee for a Responsible Federal Budget).
• Handling of COVID-19: Trump defended his administration’s response to the COVID-19 pandemic, highlighting the stimulus measures implemented to prevent an economic collapse reminiscent of the Great Depression. The CARES Act passed in March 2020, provided significant relief, including direct payments to individuals, loans to small businesses, and enhanced unemployment benefits. These measures were crucial in stabilizing the economy during the initial shock of the pandemic (Congressional Budget Office). Trump argued that these actions laid the groundwork for a swift economic recovery and prevented more severe consequences.
• Economic Impact and Recovery: Trump pointed to the rebound of the stock market and the rapid recovery of some economic sectors as evidence of his successful handling of the crisis. Indeed, the stock market did recover relatively quickly, with the S&P 500 reaching new highs by the end of 2020 (S&P Global). This recovery was partially due to the aggressive fiscal and monetary responses, including the Federal Reserve's measures to lower interest rates and support financial markets (Federal Reserve).

President Biden's Response to Trump’s Rebuttals

President Biden countered by criticizing Trump’s economic policies, particularly the tax cuts that he argued disproportionately benefited the wealthy and increased the federal deficit. The Tax Cuts and Jobs Act of 2017, which reduced the corporate tax rate from 35% to 21%, was a central point of contention. While proponents argued about stimulated economic growth, critics highlighted that it significantly increased the national debt (Congressional Budget Office).

• Job Creation and Unemployment: Biden emphasized the job creation under his administration, noting the addition of 800,000 new manufacturing jobs. He also referenced the reduction in unemployment rates from the pandemic peak. As of April 2024, the unemployment rate had fallen to 3.6%, reflecting a strong labor market recovery (Bureau of Labor Statistics).
• Inflation and Cost of Living: A critical point of discussion was the high inflation rates affecting everyday expenses such as groceries and housing. Inflation remained a pressing concern, with the Consumer Price Index showing significant year-over-year increases in various essential goods (U.S. Bureau of Labor Statistics). Biden attributed part of the inflationary pressures to corporate greed and the disruptions caused by the pandemic, arguing that his administration’s policies aimed to mitigate these impacts by increasing housing supply and capping rents.??????????????

You want to impose a 10 percent tariff on all goods coming into the U.S. How will you ensure that that doesn’t drive prices even higher? – Jake Tapper’s Question to Former President Trump??????

Former President Trump’s Perspective?????

During the debate, former President Trump proposed a 10 percent tariff on all goods entering the United States. He argued that this measure would compel countries like China, which he accused of exploiting the U.S. economy, to pay significant amounts of money. According to the former president, this would reduce the U.S. trade deficit and generate substantial revenue, enhancing the nation's economic power. However, the impact of such tariffs on the economy is complex. The tariffs imposed during Trump's presidency led to mixed outcomes. While some industries benefited from protection against foreign competition, consumers faced higher prices for goods, and some sectors, such as agriculture, suffered due to retaliatory tariffs. Tax Foundation (Think Tank) indicated that the tariffs increased consumer prices and reduced overall economic growth (Tax Foundation).

• Tax Cuts and Economic Growth: Trump claimed credit for the "largest" tax and regulation cut in history, asserting that these measures created jobs and spurred economic growth. The Tax Cuts and Jobs Act (TCJA) of 2017 reduced the corporate tax rate from 35 percent to 21 percent, which led to increased corporate profits and stock buybacks. However, the long-term effects on wage growth and job creation remain debated. Critics argue that the benefits accrued to wealthy individuals and corporations, with minimal trickle-down effects on the broader economy (Center on Budget and Policy Priorities).
• Inflation and Fiscal Responsibility: Trump refuted Biden’s claim of inheriting high inflation, stating that inflation remained low for 14 months into Biden’s term before increasing due to excessive spending by the Biden administration. However, the roots of inflation are multifaceted, involving supply chain disruptions from the pandemic, fiscal stimulus measures, and global economic factors. The Consumer Price Index (CPI) data from the Bureau of Labor Statistics supports that inflation rose significantly in 2021 and 2022 (Bureau of Labor Statistics).?????????
• Social Security and Medicare: Trump accused Biden of destroying Social Security and Medicare by allowing millions of people to come into the country and access these benefits, which he argued would lead to their insolvency. However, there is no substantial evidence to support the claim that immigrants are depleting Social Security and Medicare resources. Many immigrants contribute to these programs through payroll taxes without being eligible to receive benefits (Center for Immigration Studies).

President Biden’s Rebuttal to Trump

The debate highlighted the significant increase in the national debt under both administrations. Trump’s administration approved $8.4 trillion in new debt, largely due to the TCJA and increased military spending. Biden’s administration, so far, has approved $4.3 trillion in new debt, partly due to COVID-19 relief measures and infrastructure investments (Committee for a Responsible Federal Budget).?

Biden criticized Trump’s fiscal policies, stating that the $2 trillion tax cut primarily benefited the wealthy and increased the deficit. He proposed fixing the tax system by increasing taxes on billionaires, who he claimed pay only 8.2 percent in taxes. According to Biden, raising their tax rate to 24-25 percent could generate $500 billion over ten years, which would help fund essential services and reduce the deficit (Tax Foundation).

Biden countered that his administration has strengthened Medicaid programs by improving healthcare coverage and reducing prescription drug prices. For example, his policy to cap insulin prices at $35 per month for seniors significantly reduces out-of-pocket costs for essential medications (Kaiser Family Foundation).

Conclusion

The presidential debate between President Joe Biden and former President Donald Trump, hosted by CNN on June 27, 2024, underscored the stark economic contrasts between the two candidates. President Biden defended his administration's efforts to stabilize the economy post-COVID-19, highlighting job creation, reduced prescription drug costs, and initiatives to tackle inflation and housing costs. In contrast, former President Trump emphasized his administration's pre-pandemic economic success, tax cuts, and deregulation while criticizing Biden's handling of inflation and fiscal recovery.

Both candidates addressed complex economic issues, from inflation and unemployment to national debt and fiscal policies, each presenting a vision for America's future. The debate highlighted their differing approaches to economic management and fiscal responsibility, with Biden focusing on social equity and support for working-class Americans and Trump advocating for tax cuts and tariffs to stimulate economic growth and reduce the trade deficit.

As voters weigh these economic perspectives, the debate is a crucial platform for evaluating the candidates' plans and their potential impact on the nation's economic trajectory. With the economy at the forefront of voters' concerns, the 2024 presidential election will hinge significantly on how each candidate's economic policies resonate with the American public.