In the first debate of the 2024 election cycle, President Joe Biden and former President Donald Trump tackled critical economic topics that are at the forefront of voters’ concerns. According to the Pew Research Center, only about 25% of Americans believe the economy is in good shape, while 62% consider inflation a significant challenge.
Here are the main economic issues discussed during the debate:
Inflation
Inflation has surged over 20% since the pandemic began, peaking in June 2022. This rise in prices has strained household budgets, and the Federal Reserve’s efforts to control inflation have increased borrowing costs.
The debate opened with a focus on inflation, with both candidates blaming each other for the rising prices while highlighting their economic achievements. Biden pointed to his efforts to reduce prescription drug costs and plans to build new housing units to lower housing expenses. Trump, in contrast, claimed the economy had thrived during his tenure.
Tariffs
Trump defended his proposal to impose a 10% tariff on imported goods, asserting it would not burden American consumers. “It’s going to make countries that have exploited us, like China, pay us significantly, reduce our deficit, and give us leverage for other initiatives,” Trump argued.
However, economists at the nonpartisan Peterson Institute for International Economics estimate that Trump’s tariff plan could cost the median household at least $1,700 annually.
National Debt
The national debt has reached $34.72 trillion, and both candidates were questioned about their contributions to this figure. Moderator Jake Tapper cited nonpartisan analyses indicating that Trump added $8.4 trillion to the debt, while Biden has added $4.3 trillion so far.
Trump claimed the country was on track to reduce the debt before the COVID-19 pandemic. Biden suggested that higher taxes on the ultra-wealthy could help manage the debt. Economists predict that the national debt will continue to rise regardless of the election’s outcome.
Taxes
The debate also touched on tax policies, particularly the 2017 Tax Cuts and Jobs Act, which is set to expire in 2026 unless extended. Trump described the act as the largest tax cut in history, emphasizing the reduction in the corporate tax rate, which he argued spurred companies to repatriate funds and boost the economy.
Biden countered, stating that the tax cuts primarily benefited the wealthy, and advocated for increasing taxes on the ultra-rich to ensure a fairer tax system. “We need a more equitable tax structure,” Biden asserted.
