A plethora of issues will shape the landscape of the 2024 presidential election, with the economy being a significant point of contention between President Joe Biden and former President Donald Trump.
If we view the American economy as a bag of groceries, there are numerous policies and metrics that can be added and analyzed. Inflation is one of the key factors.
Although inflation has decreased from its peak in 2022, it still poses a challenge for many households. While presidents do not directly control pricing decisions by companies, their policies can influence the economic climate.
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President Biden has been vocal in urging companies to lower their prices and has seen some success with major retailers responding to his call. On the other hand, former President Trump has advocated for increased energy production within the U.S. to combat rising costs.
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Another major economic focus ahead of the election is housing and interest rates. President Biden has proposed new government programs to aid homebuyers deal with high interest rates, while Trump has hinted at the possibility of replacing the Federal Reserve Chairman to lower rates.
Additionally, tax policies will play a crucial role in the economic debate. Howard Gleckman, a tax policy expert at the Urban Institute, predicts a contentious tax discussion in 2025 as the Trump-era tax cuts expire.
Trump has expressed interest in extending his tax cuts, while Biden has proposed tax increases for high earners and an expansion of the child tax credit.
Gleckman highlighted the potential impact on the child tax credit, saying, “If the tax cuts and jobs act expires, it will go back to $1,000 [per year],” noting Biden’s plan to raise it to around $3,700.
