A Fresh Take on Economic Responsibility
Political Landscape Nationwide | Political events and decisions occurring at a national level throughout the country
Yo, let's talk about how the new president takes ownership of the economy's ups and downs. The deal is, a prez usually steps up and claims the economy as their own turf after some time in the Oval Office, especially when they're hustling hard to reshape the economic landscape, like slapping tariffs or reworking tax codes. But when does this transition happen, exactly?
Donald Trump, for example, threw his hat into the ring by using his Truth Social platform to declare that a booming stock market back in Jan 2024 was all thanks to his strong polling against President Biden, but when the stock market tanked due to a bad GDP report in 2025, he swiftly pinned the blame on Biden. "The market doesn't belong to Trump anymore, it's Biden's mess now." He went on to say, "Biden got us in this slump, but just wait 'til the good times roll, they're gonna be epic, be patient."
Now, this attempts to shift blame for bad news to the former president raises an interesting question: At what point does a new president actually take responsibility for economic performance?
Georgia Tech University's Mark Zachary Taylor commented that for a typical prez, it could take anywhere from six months to two years to call the economy "theirs." However, bolder presidents with stronger Congressional support might see the economy become "their" territory more quickly.
Case in point, President Franklin D. Roosevelt pushed through crucial legislation to combat the Great Depression in the first 100 days of his presidency. Ronald Reagan and Barack Obama also made major economic moves during their first terms in office, but Trump's impact was faster and sharper, with the biggest jump in imports since 1972 reported in Q1 2025.
Way back in Q4 2024, Trump slapped 10% import taxes (tariffs) on just about every country, including friends and foes alike, all in the name of job creation in the USA. He also went heavy on China, slapping a 145% tariff, and foreign steel, aluminum, and autos. His whack-a-mole approach to tariffs has caused manufacturers to receive fewer orders and see lowered production.
The S&P 500 stock index has plummeted 7% since Inauguration Day Jan 20, and consumer confidence has taken a hit. Economist Joseph Stiglitz, a Nobel Prize-winner, points out that it's impossible to deny the impact of Trump's on-again, off-again tariffs on the current economic climate.
And it's not just the stocks and consumers. The commerce department recently reported that the economy shrank 0.3% in Q1 2025, which set off alarm bells for many and led Trump to renew his criticism of Biden. But as Professor Taylor noted, this economic slump was exactly what happened when companies rushed to bring in goods to beat the tariffs.
In fact, the Trump era trade war has not only affected the stock market and the dollar's value, but it's also caused confusion for manufacturers, with many not fully grasping the complex duties calculations and potentially overpaying duties. Over 10 comments in a May 2025 survey of manufacturers, all focused on tariffs.
Ultimately, accountability for economic performance is a complex issue. While presidents might not be solely responsible for economic outcomes from the get-go, their policies can have immediate impacts. The full picture, however, takes time to develop, and it's the cumulative effect of those policies that will ultimately determine their success or failure.
- As the new president grapples with economic responsibility, the question arises about when a president actually takes ownership of economic performance.
- According to Georgia Tech University's Mark Zachary Taylor, it could take a president anywhere from six months to two years to claim the economy as their own.
- Bolder presidents with strong Congressional support might see the economy become their territory more quickly.
- In 2025, the economy shrank 0.3%, which was a direct result of companies rushing to import goods to beat Trump's tariffs.
- The S&P 500 stock index has plummeted 7% since Inauguration Day, and consumer confidence has taken a hit due to the unpredictable nature of Trump's tariff policy.
- The Trump era trade war has not only affected the stock market and the dollar's value, but it has also caused confusion among manufacturers due to complex duty calculations, potentially resulting in overpayments.
- The commerce department reports that the Trump-era trade war has affected various sectors, including the insurance, education, transportation, finance, and banking sectors, all of which are crucial areas of policy-and-legislation and politics.
- Biden's general news headlines in 2025 are filled with discussions about the falling business sector and struggles in policy-and-legislation, with the finance sector experiencing turbulence due to the unforeseen consequences of Trump's tariffs.
- Ultimately, accountability for economic performance is a complex issue, as presidents may not be solely responsible for economic outcomes from the beginning, but their policies can have immediate and lasting impacts, shaping the economic landscape for years to come.
