In his second State of the Union address, President Joe Biden made some bold claims about the economy and his own accomplishments. But how much of it is true? In this blog post, we’ll break down the facts behind Biden’s claims and see what’s really going on.
From the record-breaking deficit reduction to the near record-low unemployment rates for Black and Hispanic workers, Biden has certainly made some impressive strides in the past two years. But did he really have a hand in all of it? We’ll take a look at the research to see what’s really going on.
Biden said that his administration has cut the deficit by more than $1.7 trillion – the largest deficit reduction in American history. But the primary reason for this reduction is that the deficit had skyrocketed in 2020 due to bipartisan emergency pandemic relief spending. Independent analysts say that Biden’s own actions, including his laws and executive orders, have had the overall effect of adding to current and projected future deficits, not reducing them.
Biden also claimed that there were a record 10 million applications to start new businesses in the last two years. This is true, with the highest number since 2005. But the pandemic-era boom in entrepreneurship began after millions of Americans lost their jobs in early 2020, and the extra money from stimulus bills signed by Trump and Biden, as well as low interest rates, all contributed to this boom.
Biden also criticized the fiscal management of former President Donald Trump’s administration, saying that nearly 25% of the entire national debt was added by just one administration alone – the last one. This is correct, as the national debt increased by just under $8 trillion during Trump’s four years in office. But it’s important to note that some of the increase in the debt during the Trump era was because of the trillions in emergency Covid-19 pandemic relief spending that passed with bipartisan support.
Finally, Biden touted the bipartisan CHIPS and Science Act, claiming that it will produce hundreds of thousands of new jobs. While it’s impossible to fact check this claim, Biden is correct that companies have announced $300 billion in manufacturing investments during his presidency. The majority of these investments have been in semiconductor facilities, and the Biden administration has emphasized the importance of US semiconductor manufacturing.
Biden also said that the Inflation Reduction Act will help families save more than $1,000 a year with tax credits to purchase electric vehicles and energy-efficient appliances. While this is true, it could take years for EV tax credits to become fully available.
In conclusion, Biden has certainly made some impressive strides in the past two years. But it’s important to look at the facts behind his claims to see what’s really going on.