Trump Declares: Biden’s ‘Stagflation Catastrophe’ Is Over, Economic Boom Begins

Paul Riverbank, 1/14/2026Trump touts an economic boom, but skepticism and voter concerns linger as elections approach.

The White House, aiming to reinforce this narrative, released figures that almost defy belief: investment commitments totaling over $18 trillion in less than a year, said Trump. Later, the official tally slid downward, closer to $9.6 trillion—still a remarkable sum if it holds up to scrutiny. Thus far, independent watchdogs and fact-checkers have found those figures somewhat hazy, making it hard for observers to get a clear fix.

Despite the confident talk, Trump is hardly immune from criticism. The labor market looks more turbulent today than it did at his return, with unemployment ticking higher—not by astronomical margins, but enough to draw attention. Inflation, meanwhile, has kept a stubborn grip; it hasn’t notably retreated from where things stood when Trump was sworn in again. For many Americans, paychecks seem to be playing a ceaseless game of catch-up with prices. Anecdotally, it’s hard to find voters who say they feel genuinely better off than they did a year or two ago. Perhaps that helps explain why Trump’s economic approval remains in the low-to-mid 40s, and hasn’t budged much despite the parade of upbeat numbers.

Cast against this backdrop is Trump’s favored comparison: the legacy of Joe Biden. “Joe Biden gave us a colossal stagflation catastrophe,” Trump told Detroit, blaming sky-high inflation and the dragging pace of growth squarely on the prior administration. Now, he insists, the opposite is true. “We have quickly achieved the exact opposite of stagflation, almost no inflation, and super high growth.” Administration figures cite a $1,048 boost in wages for the “typical private-sector American worker” since Trump’s return—reversing, so the White House says, losses incurred under Biden’s watch. They also tout a 4.3 percent annual GDP growth rate, with the fourth quarter supposedly on track for an even more impressive 5.4 percent—although Trump blamed a recent “Democrat shutdown” for knocking off at least one and a half points from those results. The stock market has supplied another arrow in his quiver, with record highs that he points out are buoying 401(k) accounts for millions.

And yet, there’s a certain disconnect. Voters, by and large, don’t judge the state of the economy by examining GDP charts or global rankings. They tend to look at their own wallets, the prices at the supermarket, and whether jobs in their region are actually paying better (or existing at all). Here, the picture blurs—especially for those outside the booming financial centers.

Another thing: presidential leadership on the economy often hinges on narrative clarity. Ronald Reagan, in the early 1980s, waded into even deeper economic waters, but he told the country exactly what he was doing and why. “Stay the course,” he repeated, asking for patience even as times were hard. Reagan’s approach—mapping out pain and promising future reward—has entered the history books as a model of discipline and candor.

Trump, for all his bluster, rarely lays out a sweeping roadmap. He prefers to brandish specific, tangible achievements: tariffs slapped on imports here, numbers on wages there, a crackdown on border crossings somewhere else. Sometimes the pieces add up; sometimes they seem more like disconnected victories than steps in an overarching plan. That style, brisk and unfiltered, can leave swing voters wondering what the endgame actually looks like—and that uncertainty is a risk as midterm races close in.

Now, as the State of the Union looms, anticipation is building. Optimists in Trump’s camp hope he’ll borrow a page from Reagan and connect the dots for skeptical Americans: define what he inherited, describe the medicine, and preview the cure. If he can do that—tell a story of hard beginnings and coming payoff—he might just persuade enough doubters to ride out the next stretch.

Much of Trump’s economic vision hinges on trade, with tariffs as his chosen lever. He claims that temporary pain—sometimes higher consumer prices, slower adjustments for companies—will ultimately bring manufacturing jobs and national wealth back home. Immigration remains a central plank too. Here, he paints a picture of American jobs endangered by illegal immigration, arguing that his policies defend the interests of U.S. workers in the face of Democratic resistance.

He’s shown some flexibility, dialing back tariffs on certain goods like imported furniture after public pushback. More recently, ICE enforcement has become marginally less chaotic—a response, perhaps, to mounting criticism that prior tactics proved too disruptive. Health care is also emerging as a domain for new promises, with Trump now vowing to unveil a framework designed to lower premiums and drug costs. In Detroit, he teased an imminent plan to “deliver price transparency, demand honesty and accountability from insurance companies all over the world.”

For the president, timing and communication may prove just as critical as policy substance. Economic turnarounds rarely feel smooth in real time; voters’ expectations can adjust faster than their fortunes. Americans sent a clear signal in 2024 that they wanted something different, and how they perceive the next few months of Trump’s moves could shape not only his legacy but the electoral map for Republicans.

There’s an old saying in U.S. politics: “You can’t talk people out of what they feel.” If Trump can persuade Americans that better days lie just ahead, and that pain is part of an honest transition, he may yet earn their patience—a commodity presidents never have enough of. Time, as ever, will have the final say.

Standing before a restless crowd in Detroit, President Trump wasted no time in trumpeting what he dubs the “Trump economic boom.” He claimed, plain and simple, that the numbers speak for themselves. “The results are in, and the Trump economic boom is officially begun,” he said, eyes scanning the banquet hall. As usual, he pointed to economic growth rates that—if administration figures are to be believed—leave much of the world trailing behind. He boasted, “The United States economy is growing at a rate anywhere from three to four times that of other countries.” It’s a tall claim, and like many of Trump’s boldest declarations, it stands in sharp contrast to the lingering skepticism among voters.The White House, aiming to reinforce this narrative, released figures that almost defy belief: investment commitments totaling over $18 trillion in less than a year, said Trump. Later, the official tally slid downward, closer to $9.6 trillion—still a remarkable sum if it holds up to scrutiny. Thus far, independent watchdogs and fact-checkers have found those figures somewhat hazy, making it hard for observers to get a clear fix.Despite the confident talk, Trump is hardly immune from criticism. The labor market looks more turbulent today than it did at his return, with unemployment ticking higher—not by astronomical margins, but enough to draw attention. Inflation, meanwhile, has kept a stubborn grip; it hasn’t notably retreated from where things stood when Trump was sworn in again. For many Americans, paychecks seem to be playing a ceaseless game of catch-up with prices. Anecdotally, it’s hard to find voters who say they feel genuinely better off than they did a year or two ago. Perhaps that helps explain why Trump’s economic approval remains in the low-to-mid 40s, and hasn’t budged much despite the parade of upbeat numbers.Cast against this backdrop is Trump’s favored comparison: the legacy of Joe Biden. “Joe Biden gave us a colossal stagflation catastrophe,” Trump told Detroit, blaming sky-high inflation and the dragging pace of growth squarely on the prior administration. Now, he insists, the opposite is true. “We have quickly achieved the exact opposite of stagflation, almost no inflation, and super high growth.” Administration figures cite a $1,048 boost in wages for the “typical private-sector American worker” since Trump’s return—reversing, so the White House says, losses incurred under Biden’s watch. They also tout a 4.3 percent annual GDP growth rate, with the fourth quarter supposedly on track for an even more impressive 5.4 percent—although Trump blamed a recent “Democrat shutdown” for knocking off at least one and a half points from those results. The stock market has supplied another arrow in his quiver, with record highs that he points out are buoying 401(k) accounts for millions.And yet, there’s a certain disconnect. Voters, by and large, don’t judge the state of the economy by examining GDP charts or global rankings. They tend to look at their own wallets, the prices at the supermarket, and whether jobs in their region are actually paying better (or existing at all). Here, the picture blurs—especially for those outside the booming financial centers.Another thing: presidential leadership on the economy often hinges on narrative clarity. Ronald Reagan, in the early 1980s, waded into even deeper economic waters, but he told the country exactly what he was doing and why. “Stay the course,” he repeated, asking for patience even as times were hard. Reagan’s approach—mapping out pain and promising future reward—has entered the history books as a model of discipline and candor.Trump, for all his bluster, rarely lays out a sweeping roadmap. He prefers to brandish specific, tangible achievements: tariffs slapped on imports here, numbers on wages there, a crackdown on border crossings somewhere else. Sometimes the pieces add up; sometimes they seem more like disconnected victories than steps in an overarching plan. That style, brisk and unfiltered, can leave swing voters wondering what the endgame actually looks like—and that uncertainty is a risk as midterm races close in.Now, as the State of the Union looms, anticipation is building. Optimists in Trump’s camp hope he’ll borrow a page from Reagan and connect the dots for skeptical Americans: define what he inherited, describe the medicine, and preview the cure. If he can do that—tell a story of hard beginnings and coming payoff—he might just persuade enough doubters to ride out the next stretch.Much of Trump’s economic vision hinges on trade, with tariffs as his chosen lever. He claims that temporary pain—sometimes higher consumer prices, slower adjustments for companies—will ultimately bring manufacturing jobs and national wealth back home. Immigration remains a central plank too. Here, he paints a picture of American jobs endangered by illegal immigration, arguing that his policies defend the interests of U.S. workers in the face of Democratic resistance.He’s shown some flexibility, dialing back tariffs on certain goods like imported furniture after public pushback. More recently, ICE enforcement has become marginally less chaotic—a response, perhaps, to mounting criticism that prior tactics proved too disruptive. Health care is also emerging as a domain for new promises, with Trump now vowing to unveil a framework designed to lower premiums and drug costs. In Detroit, he teased an imminent plan to “deliver price transparency, demand honesty and accountability from insurance companies all over the world.”For the president, timing and communication may prove just as critical as policy substance. Economic turnarounds rarely feel smooth in real time; voters’ expectations can adjust faster than their fortunes. Americans sent a clear signal in 2024 that they wanted something different, and how they perceive the next few months of Trump’s moves could shape not only his legacy but the electoral map for Republicans.There’s an old saying in U.S. politics: “You can’t talk people out of what they feel.” If Trump can persuade Americans that better days lie just ahead, and that pain is part of an honest transition, he may yet earn their patience—a commodity presidents never have enough of. Time, as ever, will have the final say.