President Joe Biden’s term concludes with a significant disparity between his policy achievements and his public image. While he focused on addressing long-term priorities, many voters criticized his handling of immediate issues such as high inflation and illegal border crossings from Mexico. As his presidency comes to an end, the impact of his major domestic policies is only beginning to unfold, leaving a lasting legacy that will extend beyond his time in office.
One of Biden’s key accomplishments was his response to the COVID-19 pandemic. Shortly after taking office, he and congressional Democrats passed a $1.9 trillion relief package that included direct payments to households, financial aid for state and local governments, support for school systems, and assistance for families through an expanded child tax credit and eviction moratorium. This funding also facilitated the distribution of the COVID-19 vaccine, leading to a significant increase in vaccination rates across the country. As a result, the economy experienced a robust recovery, with millions of jobs created and economic growth resuming.
However, despite these achievements, Biden faced challenges, particularly in addressing inflation. Various factors, including disruptions in the global supply chain and slow domestic oil production, contributed to rising prices. The situation was further exacerbated by the conflict in Ukraine, causing energy and food prices to spike. Biden responded by releasing oil from the strategic petroleum reserve and implementing measures to improve the efficiency of U.S. ports. Although inflation eventually started to decrease, it remained a concern for many Americans, leading the Federal Reserve to increase interest rates.
Overall, Biden’s presidency was marked by a complex interplay of successes and challenges, with his legacy still evolving as his term comes to an end.
Companies have been downsizing their products using a tactic known as “shrinkflation.” Data from the Labor Department reveals that consumer prices have increased by 20.8% over the course of President Biden’s term, while average weekly earnings have only risen by 17.4% during the same period. This discrepancy has resulted in people’s incomes not keeping up with their expenses, causing them to perceive the economy as weaker than expected.
A surge in illegal border crossings between the U.S. and Mexico occurred as the American economy improved. The influx of unauthorized immigrants overwhelmed many states and cities while the Biden administration negotiated with Congress to enhance border security. A deal between Biden and Senate Republicans was thwarted by Trump in early 2024, prompting Biden to take executive actions belatedly, which Republicans argued should have been implemented earlier.
Government arrests at the southern border exceeded 2 million in fiscal years 2022 and 2023, but dropped to 1.53 million in fiscal year 2024 as reported by U.S. Customs and Border Protection. Republicans attributed the arrivals to increased homelessness and elevated home prices, although the migration also contributed to job growth without intensifying wage pressures that might have exacerbated inflation. The situation improved after Mexico implemented stricter measures in December 2023 to reduce crossings, and the U.S. introduced an online system called CBP One for unauthorized individuals seeking immigration status.
The term “Infrastructure week” had become synonymous with delays and distractions during the Trump administration’s failed attempts to address the nation’s infrastructure needs. In contrast, the bipartisan $1 trillion infrastructure deal signed by Biden in November 2021 saw the announcement of 66,000 projects valued at $568 billion. However, significant projects like the Brent Spence Bridge and new rail tunnels are expected to take years to complete, dampening the immediate impact on voters. The slow progress raised concerns about the delay in visible benefits to the public, including the construction of electric vehicle charging stations, which could potentially hinder Biden’s efforts to promote EV adoption.
The competition with China in areas like computer chips and artificial intelligence has been a longstanding challenge for the United States. China’s strategic investments in manufacturing have historically outpaced those of the U.S., presenting a competitive threat that requires proactive measures to address.
The Biden administration made a strategic decision to pursue a bipartisan initiative in 2022, investing $52 billion in new computer chip plants as a means to enhance the production of advanced chips within the United States. This move aimed to reduce reliance on Taiwan and South Korea, potentially safeguarding against disruptions in shipping routes that could negatively impact the U.S. economy. With the rise of artificial intelligence as an economic driver, President Biden issued an executive order in 2023 to steer the development of this emerging technology. However, similar to infrastructure projects, the construction and operation of the new chip factories authorized by the legislation will require time, indicating that much of Biden’s legacy may unfold during his successor’s term.
In August 2022, President Biden enacted the Inflation Reduction Act, a Democratic-supported measure that fell short in alleviating immediate inflationary pressures. Contrary to its title, the law encompassed an assortment of policies rather than solely targeting inflation reduction. It included $783 billion in incentives and initiatives to bolster renewable energy, combat climate change, and provide subsidies to individuals under the Affordable Care Act. While lauding the legislation as the largest climate change investment globally, Biden acknowledged the modest historical efforts in addressing climate challenges.
To offset the spending, Biden implemented measures such as allowing Medicare to negotiate lower prescription drug prices, though the effects of these negotiations would not materialize until 2026. Alterations to the tax code and increased funding for the IRS were also undertaken to enhance revenue collection from affluent taxpayers. Biden later acknowledged that the law’s focus on shifting energy sources away from fossil fuels was paramount over short-term price control efforts, expressing regret over the law’s misleading title.
Addressing lesser-known issues, Biden pursued a dual strategy of seeking bipartisan cooperation on matters like gun violence, veterans’ healthcare, and marriage equality, while concurrently empowering federal agencies to enact consumer-friendly regulations. These regulatory changes aimed to benefit consumers and enhance economic transparency, with some initiatives compelling companies to eliminate hidden fees voluntarily. Recent accomplishments include the Consumer Financial Protection Bureau’s removal of $49 billion in medical debt from credit reports, limitations on overdraft fees, and increased transparency in apartment rental fees.
Despite facing resistance on tax increases from Republicans, the national debt has swelled during Biden’s tenure, as indicated by figures from the Congressional Budget Office.
The amount of money the U.S. government needs to borrow hasn’t decreased much to service the debt as when Trump left office. The pandemic played a significant role in this, with the annual budget deficit hitting over $3 trillion in 2020 during the final year of Trump’s first term. In fiscal year 2021, the deficit remained high at $2.77 trillion due to additional pandemic relief measures. However, the deficit didn’t return to pre-pandemic levels, as the yearly shortfall that required financing through debt in fiscal year 2024 was still a substantial $1.83 trillion.
The Biden administration put forth budgets that included tax increases to help reduce the debt burden, but these proposals were blocked by Republicans. GOP lawmakers argue that Biden’s plan for student debt forgiveness has only made the debt situation worse. Additionally, many of the tax cuts implemented by Trump in 2017 are set to expire, and the new administration is considering further cuts that could potentially lead to even higher budget deficits unless offset by significant spending reductions.
