Biden Presidency: What Economic Legacy?

Joe Biden came to power in January 2021, at a very delicate time for the world’s leading economy, which was just emerging from Covid. And the least we can say is that the results are rather very positive.

When Joe Biden arrived at the White House in January 2021, America was just emerging from Covid. To get the economy going again, the Democrat immediately had Congress pass an XXL $1.9 trillion support plan, which provided for sending checks to 90 million Americans. This was followed by another plan, just as massive, this time to finance the country’s aging infrastructure.

A huge boost to growth, which jumped 5.7% that year. But this overheating caused inflation to soar, which the American central bank – the Fed – tried to slow down by drastically raising its interest rates, without however breaking growth, which still shows incredible resilience today.

But Joe Biden in the White House is also the “Inflation Reduction Act”, a major economic text of his mandate. In 2022, Joe Biden promulgated the IRA, whose primary objective is not to lower inflation, but to boost investment in green industries on American soil, through tax credits for companies, but also for individuals when purchasing electric vehicles. With the IRA, the federal government opens the floodgates of financing, on condition of production in the United States.

This “Inflation Reduction Act” is coupled with a “Chips Act”, focused on semiconductors, to bring back chip factories from Asia, which are particularly vital in the era of artificial intelligence. To date, major manufacturers have responded and promised to invest some 877 billion dollars in the production of semiconductors and batteries for electric vehicles.

The stock markets under Joe Biden have continued to break record after record. Joe Biden has never been the type to post Wall Street’s exploits on X like Donald Trump did, yet he could have. Since the beginning of his term, the Dow Jones industrial average has gone from 31,000 to 40,000 points, a jump of almost 30%. The Nasdaq, rich in technology stocks, is doing even better with +35%. A performance due to the insolent health of the tech stars, Apple and Nvidia in the lead, who have never been in better shape than under the Biden presidency.