In September 2024, as the U.S. presidential election heated up, a meme surfaced on social media, claiming to compare the financial well-being of households during the tenures of former President Donald Trump and Vice President Kamala Harris. This meme, which quickly garnered attention, sparked discussions and debates about the accuracy of its claims. It first appeared on Trump’s official Facebook page on September 5, accumulating tens of thousands of reactions and comments, indicating a strong public interest in the topic.
What makes this meme particularly intriguing is its assertion without proper sourcing, leading to questions about the validity of the comparisons it makes. The creators of the meme appeared to overlook essential contexts such as the unique economic challenges posed by the COVID-19 pandemic, which indisputably affected household finances.
As we delve deeper into the claims made within this meme, we will explore key economic indicators such as mortgage rates, personal savings, credit card delinquencies, and real weekly wages. Understanding these elements is crucial for evaluating the financial landscape during the respective administrations of Trump and Harris.
Table of Contents
Mortgage Rates
The meme claimed that mortgage rates were less favorable under Biden compared to those during Trump’s presidency. However, the data suggests that this assertion is based on selective information. Under Trump, the average 30-year fixed mortgage rate peaked at 4.94% in November 2018, while it fell to a low of 2.66% just before Biden took office in January 2021.
Following Biden's inauguration, the Federal Reserve took drastic steps to lower interest rates to aid economic recovery from the pandemic. As a result, mortgage rates remained low initially but began to rise due to inflationary pressures starting in March 2022. By October 2023, rates climbed back to an average of 7.79%, demonstrating the volatility of the housing market in response to economic conditions, not simply presidential policies.
Personal Savings
The meme also asserted that personal savings saw a dramatic increase under Trump but a significant decrease under Biden. While it is true that personal savings rates surged during the pandemic, reaching historic highs of 32% in April 2020, the rates fluctuated considerably thereafter. By the time Biden took office, savings had already dipped as economic activities resumed.
Analyzing the personal savings data from the beginning of each president's term reveals that savings increased significantly under Trump, yet they also saw a notable rise during Biden’s early administration. Thus, the claims regarding personal savings warrant a more nuanced understanding of economic conditions rather than a straightforward comparison.
Credit Card Delinquency
Another claim made by the meme was regarding credit card delinquencies, suggesting that they had worsened under Biden. In reality, credit card delinquencies reached an all-time low during the pandemic, reflecting a decrease in consumer spending and increased savings. However, as the economy reopened and spending resumed, delinquencies began to rise again.
Data shows that credit card delinquency rates fell to 1.54% in the third quarter of 2021, only to rise to 3.25% by the second quarter of 2024. This increase does not solely reflect the policies of a particular administration but rather the natural ebb and flow of consumer behavior influenced by external economic factors.
Real Weekly Wages
The meme’s claims regarding real weekly wages also require scrutiny. It indicated that wages increased under Trump but fell under Biden. While it is accurate that wages spiked during the pandemic due to the loss of low-paying jobs and the transition to remote work, this trend reversed as inflation accelerated and economic activity resumed.
Real weekly wages saw a peak of $393 during the pandemic’s height, but by the second quarter of 2022, they had begun to decline. This indicates that wage fluctuations are not strictly tied to presidential policies but are significantly influenced by broader economic trends.
Ultimately, the claims made in the meme circulating during the election are simplistic and fail to account for the complexities of economic data. A thorough examination reveals that household spending power is influenced by a multitude of factors, including but not limited to presidential policies.
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