How 4 Key Economic Issues Were Addressed in the First Presidential Debate

The economy was an important topic as President Joe Biden and former President Donald Trump debated Thursday for the first time during the 2024 election cycle.

Economic topics have dominated voters’ concerns so far in the election. According to the Pew Research Center, fewer than a quarter of Americans think the economy is in a good place, while 62% feel inflation is a major issue facing the country.

Here are some of the highlights of the candidates’ economic discussions during the debate.

Inflation

Inflation has risen more than 20% since the onset of the pandemic, peaking in June 2022. The price increases have stretched household budgets, while the Federal Reserve’s fight to tame inflation has increased the cost of borrowing.

The debate was opened with a question about inflation, and the candidates took the chance to blame each other for price increases and both touted their economic accomplishments.

Biden mentioned his work to reduce prescription drug prices and said his administration is working to build new housing units to decrease housing costs.

Trump responded by saying the economy has “never done so well” as under his administration.

Tariffs

When asked about his plan to impose a 10% tariff on goods imported from other countries, Trump said the proposal would not drive up prices for Americans.

“It’s just going to cost countries that have been ripping us off for years—like China and many others, in all fairness to China—it’s going to just force them to pay us a lot of money, reduce our deficit tremendously and give us a lot of power for other things,” Trump said.

Economists with the nonpartisan Peterson Institute For International Economics estimate Trump’s plan would cost the median household at least $1,700 every year.

National Debt

The national debt has risen to $34.72 trillion, and the pair were confronted wih their contributions to the national debt.

Moderator and CNN anchor Jake Tapper cited a nonpartisan analysis showing Trump approved $8.4 trillion in new debt, while so far, Biden has approved $4.3 trillion in new debt. 

Without naming specifics on where the revenue came from, Trump said the country was ready to pay down debt before the COVID pandemic in 2020. Biden said that if trillionaires were taxed at a higher rate as he has proposed, the government would be able to pay down debt.

Economists think no matter which candidate wins, the nation debt will continue to grow.

Taxes

The pair also faced off about taxes. Much of the discussion surrounded the Trump-era 2017 Tax Cuts and Jobs Act, which will expire in 2026 if it isn’t extended.

Trump said the act was the largest tax cut in history, and he specifically called out the act’s cut to the corporate tax rate. He said that cut enticed companies to bring more money back to the U.S., boosting the economy.

Biden countered by saying the tax cuts benefited only the wealthy, and once again suggested that the tax rate on the ultra-wealthy be raised.

“We have to make sure we have a fairer tax system,” Biden said.