With the 2024 election approaching, the eyes of the nation are on President Joe Biden and former President Donald Trump as both candidates ramp up campaign efforts. This means that the Biden economy is in full focus, with both sides attempting to weaponize it against the other. Biden isn’t afraid to tout his economic success, even as his challenger attempts to spread misinformation. At a rally in March 2024, Trump described the United States as a “nation whose economy is collapsing into a cesspool of ruin, whose supply chain is broken, whose stores are not stocked.”
Fortunately for Biden, the data is on his side. Many key metrics make it clear that the U.S. economy is actually making real progress and demonstrating growth in important areas. For investors, this means the stock market will likely keep growing as well — even as Trump claims the contrary.
Let’s take a look at the country’s economic growth under Biden.
The Joe Biden Economy in Context
Some extremely recent data helps show why the “Joe Biden economy” remains robust. In March alone, the U.S. added more than 300,000 new jobs. On top of that, the unemployment rate remained under 4% for the 26th month in a row. As InvestorPlace’s Shrey Dua reports, we’re also seeing inflation continue to ease. This means that the risk of a potential stock market crash is subsiding as well.
With that said, there also hasn’t been a lot of reason to worry about a market crash in 2024 to begin with. Last month, markets reached record highs. But that’s not even the end of the positive economic developments.
Indeed, the U.S. is experiencing key growth in other areas. CNBC reports:
“Meanwhile, U.S. gross domestic product grew 2.5% in 2023, significantly outpacing that of other developed economies, according to a January report from the International Monetary Fund. The IMF projected that the U.S. will hold that lead in 2024, though it expects the rate to come down to 2.1%.”
CNBC notes that this data puts the U.S. ahead of both Canada and Germany for 2023 GDP growth. As Moody’s Chief Economist Mark Zandi told the outlet, the U.S. economy is “driving the global economic train.” Zandi believes things look good on the inflation front for the country as well.
What Comes Next?
While the Joe Biden economy is growing, Trump is likely to maintain that things are bad when they aren’t. But when it comes to the stock market, keep in mind that he isn’t exactly an expert source. In fact, Trump’s own company just went public — trading with his initials as a ticker symbol — and shares have plunged since its debut. Short sellers have lined up to bet against it.
While Trump has seen his venture fail as a publicly traded company so far, Biden has been taking important steps to help grow the U.S. economy. So, even as the upcoming election generates some turbulence, investors should relax. The Joe Biden economy has been strong all year. That isn’t likely to change as election day draws closer.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
