The U.S. economy has performed much better under Democratic presidents than Republican presidents in the modern era. In almost every measure of the U.S. economy including total job growth, unemployment, economic growth, manufacturing job growth, manufacturing investment, small business creation, and contribution to the national debt, economic performance is stronger under Democrats. While there are many factors contributing to these trends, the throughline is clear that Democratic administrations consistently help the U.S. economy perform better than Republican administrations.

Republicans have prioritized tax cuts that benefit the wealthy and that fail to boost economic growth or pay for themselves, while Democrats have prioritized investing in the middle class, supporting small businesses, and improving economic resilience after downturns. Of the 11 recessions in the modern era, 10 have begun under Republican presidents.

Overall job growth has been greater under Democratic presidents

Job growth has been notably greater under Democratic presidents than Republican presidents since the early 1980s. Looking at the last seven presidents, job growth totaled over 50 million under Democratic presidents compared to only 17 million under Republican presidents. Most recently, job growth has totaled nearly 16.2 million under the Biden-Harris administration as the U.S. economy has recovered from the pandemic recession. Conversely, there were 2.7 million fewer Americans employed when President Trump left office than at the beginning of his term, making him the first president in the modern era to oversee net job losses. 

Unemployment is lower under Democratic presidents

Since the early 1980s, the unemployment rate tends to be lower at the end of Democratic presidencies and higher at the end of Republican presidencies. Looking at the last seven presidents, the unemployment rate was lower at the end of the presidency for all three Democrats and only one Republican (Ronald Reagan), while it was higher for the other three Republicans. For example, the unemployment rate has fallen from 6.4% at the start of the Biden-Harris administration to 4.1% in September 2024. Conversely, the unemployment rate rose from 4.7% at the start of President Donald Trump’s term to 6.4% when he left office.  

The economy grows more under Democratic presidents

By and large, the economy has grown faster under Democratic presidents. Most recently, real gross domestic product (GDP) has grown by 10% under the Biden-Harris administration compared to 9% under President Donald Trump. Real GDP growth has returned to pre-pandemic levels much quicker in the United States than in other G7 countries and has even exceeded pre-pandemic forecasts from the Congressional Budget Office. 

Manufacturing job growth is greater under Democratic presidents

Total manufacturing jobs in the United States began trending downward in 1979. Fortunately, this trend began to reverse in 2010, and manufacturing jobs are now at their highest level since November 2008 due to the manufacturing renaissance taking place under the Biden-Harris administration. An analysis of the last seven presidential administrations shows that manufacturing job growth has increased more under Democratic presidents while decreasing under all Republican presidents. Most recently, the total number of manufacturing jobs decreased by 178,000 under President Trump, while the number increased by 729,000 under the Biden-Harris administration.

Manufacturing investment has surged under the Biden-Harris administration 

Manufacturing investment declined significantly during the Great Recession, though this trend reversed towards the end of President Barack Obama’s second term. Investment in manufacturing facilities slowed again under President Donald Trump. Since then, the Biden-Harris administration has committed to revitalizing American manufacturing. Thanks to legislation such as the Inflation Reduction Act and the CHIPS and Science Act, manufacturing construction spending recently surged to its highest level ever recorded and is producing hundreds of thousands of jobs.

Small business creation has been higher under the Biden-Harris administration 

A record of nearly 19 million new business applications have been filed under the Biden-Harris administration. This growth is a nationwide trend, with more business applications filed in 2023 in all 50 states and the District of Columbia than in 2019. This growth also spans across demographics, as historically underrepresented communities increasingly become business owners. During the Biden-Harris administration, there has been a record number of business applications for the types of businesses that are likely to employ additional workers. Small businesses are responsible for over 70% of the jobs created since 2019.  

Business applications grew after the pandemic and have continued to increase because of the billions of dollars in investments that have passed under the Biden-Harris administration, such as the American Rescue Plan, Inflation Reduction Act, and Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Extension Act. Small business applications are notably higher than under the Trump administration.

Twice as much was added to the national debt under President Trump as under President Biden

The U.S. national debt has increased significantly over the last two decades, largely due to partisan tax cuts passed by Republican presidents that disproportionately benefited the wealthy and big corporations.  Presidents Joe Biden and Donald Trump both approved large spending packages that were necessary to counteract the negative effects of the COVID-19 pandemic, but President Trump approved far more non-pandemic-related increases to the debt. Most of these increases were approved as part of the 2017 Tax Cuts and Jobs Act, which largely benefitted the wealthiest Americans and large corporations.  

Nearly all recessions in the modern era began under Republican presidents 

Of the 11 recessions that have occurred in the modern (post-World War II) era, 10 of them have occurred under Republican presidents. Republican presidents often inherit strong economies and leave their successors with significantly weaker economies. For example, President George W. Bush inherited a strong economy from President Bill Clinton, and his presidency ended with the Great Recession. President Donald Trump inherited the longest continuous run of job creation in modern U.S. history from President Barack Obama but became the first president in the modern era to oversee net job losses during his term. There were 2.7 million fewer Americans employed when President Trump left office than at the beginning of his term.