As President Joe Biden’s tenure comes to a close, the debate surrounding his economic legacy intensifies. From government spending and unemployment rates to stock market performance and investment initiatives, Biden’s policies have undeniably shaped the U.S. economy. However, questions remain about whether the outcomes align with the administration’s promises of sustainable growth and recovery.
Economic Indicators and Impacts
National Debt and Government Spending
The national debt has surged past $36 trillion under Biden, marking a historic high. Much of this increase stems from aggressive spending initiatives, including the $1.2 trillion Infrastructure Investment and Jobs Act and the $437 billion Inflation Reduction Act. Proponents argue these programs were necessary to modernize the nation’s infrastructure and stimulate green energy transitions. “These investments are about securing America’s economic future,” Treasury Secretary Janet Yellen remarked. Critics, however, contend that such spending risks burdening future generations with unsustainable debt levels and higher interest costs.
Bond yields, now hovering at 4.63%, reflect a shift in monetary policy designed to combat inflation. Higher yields increase borrowing costs, which could deter investments in key sectors while making debt servicing more expensive for both businesses and households.
Impact on Americans’ Cost of Living
Inflation has been one of the most defining challenges of Biden’s presidency. After peaking at 9.1% in mid-2022, Federal Reserve measures, including significant interest rate hikes, have managed to reduce inflation to 3.8% by late 2024. While these efforts have eased some pressure, housing, energy, and grocery prices remain high for many Americans. “Although inflation has come down, the cost of living remains a significant issue for middle-class families,” noted Mark Zandi, Chief Economist at Moody’s Analytics. Persistent affordability issues continue to affect a large segment of the population, emphasizing the uneven recovery from economic pressures.
Unemployment and Wage Growth
The labor market has remained robust under Biden, with unemployment stabilizing at 3.8% by late 2024 after reaching a historic low of 3.5% in mid-2023. Wage growth has also been notable, with average hourly earnings rising by 4.2% annually. Despite these gains, inflation has diluted the real purchasing power of many workers. Labor Secretary Marty Walsh stated, “We’re proud of the job market’s strength, but we recognize the need for wages to stretch further in this inflationary climate.” Additionally, some economists have noted that while wage increases are essential, structural challenges in housing and healthcare affordability persist.
Stock Market and Investment Landscape
Stock Market Performance
The U.S. stock market has seen remarkable growth during Biden’s tenure, with the S&P 500 rising approximately 26.9% in 2024 alone. Robust corporate earnings and investor optimism have been driving forces, particularly in sectors like healthcare and renewable energy. However, volatility in high-growth sectors such as technology has raised concerns. “While the market’s overall trajectory has been positive, uncertainty over Federal Reserve policies has created pockets of volatility,” remarked Liz Ann Sonders, Chief Investment Strategist at Charles Schwab. The Dow Jones Industrial Average and Nasdaq Composite have similarly experienced gains but reflect sector-specific challenges such as tech corrections and shifting energy market dynamics.
U.S. Investments and Governmental Funds
Biden’s administration has focused on transformative investments in infrastructure, renewable energy, and advanced manufacturing. The CHIPS and Science Act of 2022 directed $52 billion toward bolstering domestic semiconductor production, a move aimed at reducing reliance on foreign suppliers and enhancing U.S. competitiveness in critical technologies. Similarly, the Inflation Reduction Act has facilitated public-private partnerships in clean energy projects, accelerating the shift toward a low-carbon economy. “These initiatives are laying the foundation for economic resilience,” Commerce Secretary Gina Raimondo asserted, highlighting the administration’s forward-looking strategy. Despite these efforts, critics argue that some initiatives lack sufficient private sector momentum, potentially hindering broader adoption.
Foreign Investment and Trade Policies
Foreign investment in the U.S. has increased during Biden’s term, supported by policies designed to attract capital and revitalize domestic industries. At the same time, ongoing tensions with China over trade and technology restrictions have created complexities for international businesses. “Our focus has been on protecting American innovation while maintaining constructive global trade ties,” stated U.S. Trade Representative Katherine Tai. The administration’s push to strengthen supply chain security and reduce dependency on adversarial nations has found support, but global trade experts have pointed out that such moves could lead to retaliatory policies, potentially affecting American exporters.
Final Thoughts
As Biden’s presidency ends, his economic legacy reveals a mixed picture. Achievements in reducing unemployment and boosting key sectors like renewable energy are evident, but challenges such as rising national debt and persistent cost-of-living pressures highlight the limits of his administration’s policies. While his initiatives may have set the stage for long-term growth, their effectiveness will ultimately depend on how future administrations build on them. The balance between fiscal responsibility and transformative investments remains a central theme in evaluating his tenure, leaving a nuanced legacy for the history books.
Marc has been involved in the Stock Market Media Industry for the last +5 years. After obtaining a college degree in engineering in France, he moved to Canada, where he created Money,eh?, a personal finance website.
