Why are Republicans so bad at the economy?

Two key pieces of economic data released in recent days are clear warning signs for the U.S. economy under President Donald Trump.First, the Bureau of Economic Analysis revealed on Wednesday that the gross domestic product shrunk by 0.3% in the first quarter, down from a 2.4% rise in the last quarter of 2024, when President Joe Biden was still in office. Companies purchasing imported goods to deal with Trump’s then-looming tariffs contributed to the slowdown.Then on Thursday the Department of Labor announced that first-time unemployment claims increased by 18,000 compared to the previous week—more than economists expected.Clearly aware that the public has a history of blaming sitting presidents and their political parties for poor economic performance, Trump almost immediately sought to shift blame. He claimed that the bad economic news was a reflection of Biden’s policies, and that his approach would work out in the long run.But voters who remember Trump’s first term and who aren’t in his personality cult will probably be extremely skeptical of his spin.Trump, after all, is the only U.S. president since labor statistics have been collected to leave office with a net job loss. As The Washington Post noted in January 2021, “No other modern president has left the U.S. with a smaller workforce than it had when they took office. Since the government started keeping track in 1939, no other president has even seen significant job losses during a single presidential term.”Trump is the most recent in a string of Republican presidents who range from poor to mediocre in their stewardship of the U.S. economy, despite the party’s claim that its policies are economically superior.Related | Why the right wants small government—no matter how dangerous it isIn fact, the U.S. has been victim to an epidemic of economic downturns under Republican presidents in the last four-plus decades.There was a recession at the end of George H.W. Bush’s presidency in 1992, following policies put in place by him and his predecessor Ronald Reagan. By 2008, the Great Recession that began under George W. Bush had taken a sledgehammer to the economy. In 2020, the last year of Trump’s first term, the economy suffered from the effects of the COVID-19 pandemic—even though Trump claimed the virus would melt away in the summer.The Democratic presidents who took office after these downturns all saw significant economic improvement on their watch. In fact, Bill Clinton, Barack Obama, and Biden have three of the five best records for job growth. In total, the three Democrats saw the economy add over 35 million jobs during their presidencies. Clinton topped the overall list, with 16.6 million jobs added between 1993 and 2001.An October 2024 study from the Senate Joint Economic Committee also determined that the economy—or GDP—grew more under Democrats and unemployment has been lower under the party as well.Why? Republicans push tax cuts—particularly tax cuts that favor wealthy people and large corporations. Reagan, George W. Bush, and Trump all embraced this economic approach. It doesn’t work to stimulate the overall economy.In 2017, Trump and congressional Republicans promised that their Tax Cuts and Jobs Act would lead to growth. It didn’t happen. The Center for American Progress noted in an April 2024 report that “more than six years later, there is little evidence that the law’s costly corporate tax cuts delivered promised growth or improved well-being for the vast majority of the nation’s workforce.”Trump’s law instead increased economic inequality and cut revenue that could have been used to invest in America.In stark contrast, the Democrats have targeted investment in the middle class and the social safety net. Clinton signed the 1993 Omnibus, Obama passed the Recovery Act, and Biden signed the American Rescue Plan before the economy recovered during each of their presidencies.The GOP’s approach has been to hand out tax cuts to really rich people in the hopes that their savings will “trickle down” to the rest of the economy. But studies have clearly shown that trickle-down economics does not work.But if Republicans admit this and concede that the Democratic approach of focusing on middle-class needs has worked (as the data shows), they would have to give up on doling out tax cuts and shrinking the government.That runs contrary to the interests of the super-rich. People like Trump’s top benefactor Elon Musk stand to disproportionately benefit from millionaire and billionaire tax cuts. And people like Musk are largely unaffected when the government stops providing services and protection for millions of people, especially those in the working class.If Republicans aren’t catering to Musk and his ilk, the money they provide to the party goes away and Republicans must concede one of their most deeply held arguments against Democrats and the left.So even when data shows their ideas aren’t working and are making things worse, the GOP will not back down. Trump and other Republicans will say conservative economic policies just need another shot, and that liberal policies—which have helped the economy recover time and time again—are a failure.The spin may temporarily fool voters, but the data tells the truth.Campaign Action

Two key pieces of economic data released in recent days are clear warning signs for the U.S. economy under President Donald Trump.

First, the Bureau of Economic Analysis revealed on Wednesday that the gross domestic product shrunk by 0.3% in the first quarter, down from a 2.4% rise in the last quarter of 2024, when President Joe Biden was still in office.

Companies purchasing imported goods to deal with Trump’s then-looming tariffs contributed to the slowdown. Then on Thursday the Department of Labor announced that first-time unemployment claims increased by 18,000 compared to the previous week—more than economists expected. Clearly aware that the public has a history of blaming sitting presidents and their political parties for poor economic performance, Trump almost immediately sought to shift blame.

He claimed that the bad economic news was a reflection of Biden’s policies, and that his approach would work out in the long run. But voters who remember Trump’s first term and who aren’t in his personality cult will probably be extremely skeptical of his spin. Trump, after all, is the only U.

S. president since labor statistics have been collected to leave office with a net job loss. As The Washington Post noted in January 2021, “No other modern president has left the U.

S. with a smaller workforce than it had when they took office. Since the government started keeping track in 1939, no other president has even seen significant job losses during a single presidential term.

” Trump is the most recent in a string of Republican presidents who range from poor to mediocre in their stewardship of the U.S. economy, despite the party’s claim that its policies are economically superior.

Related | Why the right wants small government—no matter how dangerous it is In fact, the U.S. has been victim to an epidemic of economic downturns under Republican presidents in the last four-plus decades.

There was a recession at the end of George H.W. Bush’s presidency in 1992, following policies put in place by him and his predecessor Ronald Reagan.

By 2008, the Great Recession that began under George W. Bush had taken a sledgehammer to the economy. In 2020, the last year of Trump’s first term, the economy suffered from the effects of the COVID-19 pandemic—even though Trump claimed the virus would melt away in the summer.

The Democratic presidents who took office after these downturns all saw significant economic improvement on their watch. In fact, Bill Clinton, Barack Obama, and Biden have three of the five best records for job growth. In total, the three Democrats saw the economy add over 35 million jobs during their presidencies.

Clinton topped the overall list, with 16.6 million jobs added between 1993 and 2001. An October 2024 study from the Senate Joint Economic Committee also determined that the economy—or GDP—grew more under Democrats and unemployment has been lower under the party as well.

Why? Republicans push tax cuts—particularly tax cuts that favor wealthy people and large corporations. Reagan, George W. Bush, and Trump all embraced this economic approach.

It doesn’t work to stimulate the overall economy. In 2017, Trump and congressional Republicans promised that their Tax Cuts and Jobs Act would lead to growth. It didn’t happen.

The Center for American Progress noted in an April 2024 report that “more than six years later, there is little evidence that the law’s costly corporate tax cuts delivered promised growth or improved well-being for the vast majority of the nation’s workforce.” Trump’s law instead increased economic inequality and cut revenue that could have been used to invest in America. In stark contrast, the Democrats have targeted investment in the middle class and the social safety net.

Clinton signed the 1993 Omnibus , Obama passed the Recovery Act, and Biden signed the American Rescue Plan before the economy recovered during each of their presidencies. The GOP’s approach has been to hand out tax cuts to really rich people in the hopes that their savings will “trickle down” to the rest of the economy. But studies have clearly shown that trickle-down economics does not work.

But if Republicans admit this and concede that the Democratic approach of focusing on middle-class needs has worked (as the data shows), they would have to give up on doling out tax cuts and shrinking the government. That runs contrary to the interests of the super-rich. People like Trump’s top benefactor Elon Musk stand to disproportionately benefit from millionaire and billionaire tax cuts.

And people like Musk are largely unaffected when the government stops providing services and protection for millions of people, especially those in the working class. If Republicans aren’t catering to Musk and his ilk, the money they provide to the party goes away and Republicans must concede one of their most deeply held arguments against Democrats and the left. So even when data shows their ideas aren’t working and are making things worse, the GOP will not back down.

Trump and other Republicans will say conservative economic policies just need another shot, and that liberal policies—which have helped the economy recover time and time again—are a failure. The spin may temporarily fool voters, but the data tells the truth..