Report: Four Years in Office: Donald Trump’s Presidential Impact

Report: Four Years in Office: Donald Trump’s Presidential Impact

Written by Alexis Carter 

Donald J. Trump served as the 45th President of the United States from January 20, 2017, to January 20, 2021. His presidency was marked by significant policy changes, economic shifts, and polarizing controversies that shaped both domestic and international landscapes. I do not claim to be a politician or someone who takes a particular liking to politics. However, as someone who has a major interest in taxes, I was compelled to delve deeper into Donald Trump’s presidency. Amid the banter, quarreling, and division he has caused, I decided to set aside the noise and focus on the facts. This report provides an objective overview of Trump’s policies and their impacts on Americans.

Domestic Policies and Actions

1. Tax Cuts and Jobs Act (2017):
   Trump’s signature legislative achievement was the Tax Cuts and Jobs Act, which lowered corporate tax rates from 35% to 21% and reduced tax rates for individuals across most income brackets. While low-income families saw temporary benefits through increased standard deductions and expanded child tax credits, critics argued the law disproportionately benefited corporations and the wealthy.
2. Judicial Appointments:
   Trump reshaped the federal judiciary by appointing three Supreme Court justices—Neil Gorsuch, Brett Kavanaugh, and Amy Coney Barrett—solidifying a conservative majority. He also appointed more than 200 federal judges, significantly influencing the judicial branch for decades.
3. Immigration Policies:
   Immigration was a cornerstone of Trump’s presidency. He implemented a “zero tolerance” policy at the southern border, leading to family separations that drew widespread condemnation. His administration also imposed travel restrictions on several predominantly Muslim countries and prioritized building a border wall with Mexico, though much of it replaced existing barriers.
4. Criminal Justice Reform:
   Trump signed the bipartisan First Step Act, which aimed to reduce recidivism and ease sentencing for nonviolent offenders. This was seen as a win for criminal justice reform advocates, particularly those in low-income and minority communities disproportionately affected by harsh sentencing laws.
5. Healthcare:
   The Trump administration sought to repeal and replace the Affordable Care Act (Obamacare), though it failed to achieve a full repeal. However, it removed the individual mandate, which had required Americans to have health insurance or face penalties. Critics argued this weakened healthcare access for low-income individuals.
6. Economic Growth (Pre-COVID-19): 

When Barack Obama left office on January 20, 2017, the U.S. unemployment rate was 4.7%. This was a significant decrease from the height of the Great Recession in 2009, when the unemployment rate had peaked at 10%. Before the pandemic, the U.S. experienced low unemployment and wage growth, particularly among lower-income workers. The unemployment rate fell to 3.5% in 2019, a 50-year low. Trump also renegotiated trade deals, such as replacing NAFTA with the United States-Mexico-Canada Agreement (USMCA), and engaged in a trade war with China to push for more favorable trade terms.

The COVID-19 Pandemic

The pandemic was a defining challenge of Trump’s presidency. His administration enacted the CARES Act, which provided stimulus checks, expanded unemployment benefits, and offered loans to small businesses. However, Trump’s handling of the crisis drew criticism for downplaying the severity of the virus, inconsistent messaging, and a slow federal response. Unemployment spiked to 14.7% in April 2020, the highest since the Great Depression, disproportionately affecting low-income and minority communities.

By the end of his term in January 2021, unemployment had partially recovered to 6.3%, but the economic impact of the pandemic lingered.

Foreign Policies

1. "America First" Doctrine:
   Trump’s foreign policy focused on prioritizing U.S. interests. He withdrew the United States from several international agreements, including the Paris Climate Accord and the Iran nuclear deal (JCPOA).
2. Middle East Peace Agreements:
   His administration brokered the Abraham Accords, normalizing relations between Israel and several Arab nations, a significant diplomatic achievement.
3. Relations with North Korea:
   Trump held historic meetings with North Korean leader Kim Jong-un, becoming the first sitting U.S. president to step into North Korea. However, efforts to denuclearize the Korean Peninsula largely stalled.
4. Military Actions:
   Trump ordered the killing of Iranian General Qasem Soleimani, escalating tensions with Iran. He also reduced U.S. troop presence in Afghanistan, Iraq, and Syria, emphasizing the need to end “endless wars.”

Deregulation: Trump's administration pursued an aggressive deregulatory agenda, rolling back various rules that were seen as burdensome to businesses. Many of these regulatory rollbacks, particularly in the financial and environmental sectors, were beneficial to large corporations, real estate developers, and energy companies, many of which are owned or heavily influenced by wealthy individuals. These policies made it easier for businesses to operate without the constraints of regulations, which increased profitability, often benefiting shareholders and the wealthy.

Stock Market Performance: Under Trump’s leadership, the stock market saw significant growth, particularly during the first few years of his presidency. Wealthy individuals and investors, who often have a substantial portion of their wealth tied up in the stock market, benefited from the rising values of their portfolios. Trump’s tax policies, particularly the cuts on corporate taxes, were seen as fueling this market growth.

Stock Market Under Barack Obama (2009-2017)

• S&P 500 Growth: When Obama took office in January 2009, the S&P 500 was near 700 points. By the time he left office in January 2017, the S&P 500 had risen to around 2,270 points. This represented a 225% increase during his presidency, with the stock market recovering from the lows of the financial crisis and experiencing consistent growth.
• Key Factors: Obama's administration inherited a devastated economy and took steps to stabilize it, including the American Recovery and Reinvestment Act of 2009 (stimulus package), the bailout of the auto industry, and the Dodd-Frank Wall Street Reform and Consumer Protection Act. These actions helped restore investor confidence, and the market generally trended upward during Obama's tenure, although growth was slower in the early years due to the lingering effects of the recession.

Stock Market Under Donald Trump (2017-2021)

By the time Trump took office in January 2017, the stock market had experienced a significant recovery under Obama. Here’s a comparison:

• S&P 500 Growth: When Trump took office in January 2017, the S&P 500 was at 2,269 points. By the time he left office in January 2021, the S&P 500 was around 3,750 points. This represented an increase of about 65% during his four years in office, a solid performance, though not as dramatic as the recovery under Obama from the depths of the recession.
• Key Factors: The stock market during Trump’s presidency benefitted from tax cuts, particularly the Tax Cuts and Jobs Act of 2017, which lowered corporate tax rates and was expected to boost profits. Additionally, deregulationand trade policies (including the trade war with China) affected the market, but the biggest impact came from COVID-19, which caused an initial market crash in March 2020 before a strong recovery fueled by stimulus packages and the Federal Reserve's interventions.

Comparison:

• Obama's Legacy: Obama inherited an economy in crisis and oversaw a recovery that culminated in substantial market growth. The stock market’s rise during Obama’s presidency was mainly driven by the recovery from the Great Recession.
• Trump's Legacy: Trump benefitted from an already-recovered economy and a strong stock market. While his administration saw continued growth, especially in the early years, the COVID-19 pandemic caused a significant short-term dip, followed by a sharp rebound due to massive government stimulus.

Capital Gains Tax Cuts: Trump’s tax policies included a focus on reducing the tax burden on investment income, which disproportionately benefits the wealthy. Lower-income individuals are less likely to have significant investment income, so cuts to capital gains taxes primarily helped those with large portfolios of stocks, real estate, and other assets.

Wealthy Donors and Business Interests: Trump's administration often aligned with business interests, reducing corporate taxes and loosening regulations that were perceived as constraints on profitability. Many wealthy donors and corporate executives supported his policies because they saw them as increasing profits and reducing taxes on high earners and businesses.

Impact on Low-Income Americans

Trump’s presidency had both positive and negative impacts on low-income communities:

Positive Impacts:

• Job Growth (Pre-COVID-19): The strong pre-pandemic economy created opportunities for low-income workers, and wages for those in the bottom income brackets grew faster than average.
• Criminal Justice Reform: The First Step Act benefited many low-income families by reducing prison sentences and promoting rehabilitation.
• Opportunity Zones: His administration incentivized investment in distressed communities through Opportunity Zones, aimed at stimulating economic development.

Negative Impacts:

• Healthcare Access: Attempts to dismantle Obamacare and proposals to cut Medicaid funding jeopardized access to healthcare for millions of low-income Americans.
• Cuts to Social Programs: The administration tightened eligibility for SNAP (food stamps) and proposed cuts to public housing assistance, drawing criticism for reducing the social safety net.
• COVID-19 Response: The pandemic disproportionately harmed low-income communities, and critics argued that federal relief efforts were inadequate or unevenly distributed.

Controversies and Impeachments

Trump’s presidency was highly polarizing and marked by numerous controversies:

1. First Impeachment (2019):
   Trump was impeached for abuse of power and obstruction of Congress related to his dealings with Ukraine but was acquitted by the Senate.
2. Second Impeachment (2021):
   Following the January 6 Capitol riot, Trump was impeached again for incitement of insurrection. He was acquitted by the Senate after leaving office.
3. Divisive Rhetoric:
   Critics accused Trump of fostering division with inflammatory remarks on race, immigration, and political opponents. His handling of protests following George Floyd’s murder drew sharp criticism.

Trump’s presidency reflected a mix of achievements, setbacks, and controversies. While his policies benefited certain segments of the population, including businesses and workers in a strong pre-pandemic economy, his presidency also left unresolved challenges for low-income Americans and significant political polarization.