Donald Trump continuously asserts that he took over a disastrous economy from Joe Biden, and many Americans believe him, even though this is untrue. While promoting Tesla at a White House event on Tuesday, Trump contended that the US economy “went to hell” under Biden. During his national address to Congress last week, Trump claimed, “We inherited from the last administration an economic catastrophe and an inflation nightmare.”

However, according to standard economic indicators, the US economy was in excellent condition when Biden transferred the presidency to Trump, despite most Americans expressing dissatisfaction with the economy due to inflation.

When Biden’s term ended, the unemployment rate stood at a mere 4.1%, and throughout his presidency, the average unemployment rate was significantly lower than any other president since the 1960s. Although Trump frequently criticizes the high inflation under Biden, the truth is that by the end of Biden’s term, the inflation rate had decreased to just 2.9%—an improvement of more than two-thirds from its peak and nearby the Federal Reserve’s target.

Not only that, the nation’s GDP growth was impressive, rising at a 3.1% rate by the end of Biden’s presidency. Since the pandemic, the economic growth in the US exceeded that of the UK, France, Germany, and other G7 nations. Before the election, The Economist magazine reported that the US economy was “the envy of the world” and had outpaced other rich nations.

Trump often criticizes job growth under Biden, but the reality is that the US gained 16.6 million jobs during Biden’s presidency, surpassing any previous four-year term of any US president. In contrast, under Trump, the nation experienced a net loss of 2.7 million jobs, making Trump’s presidency the first since Herbert Hoover’s to suffer a decline in jobs. Though the pandemic played a significant role, even in Trump’s first three years before the pandemic, job growth was only half as fast as under Biden.

Trump has boasted about how his tariffs would bring back manufacturing; however, Biden achieved significant success in reviving manufacturing and factory jobs. Understanding Biden, the nation gained a commendable 750,000 factory jobs, the most for any president since the 1970s. This was largely due to Biden’s green jobs legislation and the Chips Act for semiconductor production, which more than doubled manufacturing investments during Biden’s term.

Despite failing to persuade most Americans that the economy was prospering, Biden took pride in its performance. In December, Biden stated, “Incomes are up by nearly $4,000 adjusted for inflation [since he took office], and unions have won wage increases from 25% to 60% in industries like autos, ports, aerospace, and trucking. We’ve seen 20 million applications to start small businesses. Our economy has grown 3% per year on average the last four years — faster than any other advanced economy. Domestic energy production is at a record high.”

Numerous economists refuse to buy into Trump’s claim that he inherited a poor economy. Paul Krugman wrote that in January, when Biden stepped down, the US witnessed “an economy that was nearly perfect, with everything more or less just right”. Mark Zandi, the chief economist at Moody’s Analytics, spoke even more positively, “President Trump is inheriting an economy that is as good as it gets. The US economy is the envy of the rest of the world, as it is the only significant economy growing more quickly post-pandemic than before the pandemic.”

Trump pays special attention to the stock market as a measure of the economy. However, during Biden’s term, Wall Street performed exceptionally. The Dow Jones Industrial Average surged by 39%, and the S&P 500 jumped by a remarkable 55.7%, including a 28% surge in 2024. Conversely, since Trump took office, the stock market has fallen amid concerns from investors over the president’s trade wars with the US’s trading partners.

Admittedly, there were severe economic challenges under Biden. Housing affordability was a major issue, and inflation reached uncomfortable levels. The rise in prices was largely driven by the pandemic, leading to global supply chain problems, and Putin’s war in Ukraine, which increased food and fuel prices. However, Trump, in criticizing Biden over inflation, overlooks these factors.

As Trump’s trade wars unsettle the markets and make CEOs hesitant about their investment plans, many economists believe that the US is increasingly likely to experience a recession this year.

Trump has a history of refusing to accept responsibility for errors and problems. By repeatedly claiming that he inherited a poor economy, he appears to be setting the stage to blame Biden if the country slides into a painful recession.