Recent discussions around President Donald Trump’s economic policies reveal a stark contrast to the narratives coming from Democrats and their media supporters. These voices have been quick to criticize the president’s approach, suggesting it harms everyday Americans. Yet, evidence indicates that economic indicators show improvement under Trump’s policies.
Ten months ago, mortgage rates stirred little concern when President Joe Biden held office. Now, under Trump, these rates have actually dropped. Similarly, grocery prices—highlighted during last year’s campaign due to the notorious spike in egg prices—are also decreasing, although they remain higher than when Biden began his term. This apparent turnaround has drawn attention, as the narrative suggests a sudden downturn linked to Trumponomics. However, the facts suggest otherwise.
One notable factor contributing to inflation during Biden’s administration has been the soaring federal deficits. In 2022, the deficit reached $1.38 trillion, skyrocketing to $1.83 trillion by 2024. Under Trump’s leadership, this trend saw a significant reversal. Fiscal Year 2025 recorded a deficit of $1.78 trillion, down from earlier projections. The Congressional Budget Office expected this figure to be $1.9 trillion, but reality proved otherwise, as the deficit declined following heightened spending in Biden’s later years.
Kevin Hassett, the director of Trump’s National Economic Council, pointed out that the reduction in the deficit is not solely due to tariff revenues but also because of a positive shift in income tax revenues. “There’s more room—even for deficit hawks—to think about rebate checks,” he stated, citing successful spending cuts and the economic benefits stemming from tax reductions. Hassett noted, “We’re up about $200 billion relative to last year in revenue,” pointing toward a significant increase in treasury income.
The financial numbers seem to reinforce these assertions. For FY 2025, total revenue hit $5.23 trillion, a jump of over $300 billion from the previous year, suggesting robust economic activity. Historically, one can draw parallels to the policies introduced by Ronald Reagan, who championed tax cuts as a means to stimulate economic growth and job creation while simultaneously lowering inflation. This approach marked a significant departure from the Keynesian economics that had dominated prior to his presidency. Reagan’s Economic Recovery Tax Act of 1981 embodied the principles of supply-side economics, aiming to increase the supply of goods and services through lower taxes.
Bruce Bartlett, a key figure behind Reagan’s legislation, noted that while Keynesian theory posited that higher taxes could temper inflation by curtailing disposable income, supply-side thinking viewed lower taxes as a means to enhance work, savings, and investment incentives—thereby potentially decreasing inflationary pressures. Bartlett recalled, “Our thinking, by contrast, was that lower taxes would increase the incentive to work, save and invest.” This philosophy ultimately led to a significant drop in inflation in the early 1980s and fostered a booming economy throughout the decade.
Evidence from the Atlanta Federal Reserve Bank indicates a similar pattern under Trump, with economic growth estimated at 4.0 percent in the last quarter. By comparison, growth during Biden’s final quarter was a mere 2.3 percent. Moreover, recent inflation rates have remained below expectations at approximately 3 percent, while wages are rising faster than inflation—an encouraging sign compared to the economic stagnation experienced during much of Biden’s presidency.
In summary, the debate surrounding Trump’s economic policies continues as Democrats and media figures attempt to paint a bleak picture. However, the mounting evidence suggests that Trumponomics is yielding tangible results, echoing the successes seen during earlier administrations that embraced similar supply-side principles. It appears that the path to recovery from the economic challenges left in the wake of the Democrats is underway; yet it will take time to forge ahead fully.
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