The Economy Was Roaring When Biden Took Office

Unemployment already was lower than at any time in Obama’s first term.

By Eugene Scalia. Excerpts:

"Kamala Harris’s assertion that “Donald Trump left us the worst unemployment since the Great Depression.”"

"Unemployment in December 2020 was 6.7%."

"By the time Mr. Biden signed his American Rescue Plan in March 2021, unemployment had dropped to 6.1%. By contrast, unemployment was above 8% for nearly all of Mr. Obama’s first term, and didn’t drop to 6.1% until he’d been in office more than five years."

"when Mr. Trump left office the S&P 500 was higher than before Covid. By the first quarter of 2021, gross domestic product was also surpassing pre-Covid levels."

"The law provided a $300-a-week federal unemployment benefit nonetheless, on top of the regular unemployment benefits provided by the states."

"This $300 “rescue plan” benefit, when combined with state benefits, paid many recipients more than they would have earned by returning to their pre-Covid jobs, a problem that had been apparent since enactment of the $600-a-week Cares Act unemployment benefit a year earlier.

To compete with the rescue plan’s largess, businesses were forced to raise pay—and then prices. This fueled inflation, leading to the Fed’s interest rate increases, leading to the slow job growth we’ve seen recently."

"In the robust pre-Covid economy, unemployment reached the lowest levels in 50 years. Blacks, Hispanics, women and low-wage workers saw some of the strongest job gains and wage growth."