Biden’s Economic Legacy: A Mixed Record of Recovery and Challenges

As Joe Biden’s presidential term ends, final economic statistics reveal a complex legacy marked by both notable achievements and persistent challenges. The most defining economic narrative of Biden’s presidency centered on inflation, which surged dramatically during his tenure, eroding gains in worker compensation and becoming a central issue in the 2024 election.

Consumer prices rose by 21.5% over Biden’s four years, a sharp increase from the modest 7.8% inflation during the previous administration. The most dramatic spike occurred in June 2022, when annual inflation hit 9.1%, the highest rate in over four decades. Gasoline prices exemplified this trend, climbing 31% during Biden’s term and reaching a record high of over $5 per gallon in June 2022 following Russia’s invasion of Ukraine.

Despite wage growth of 16.7% for private-sector workers, the purchasing power of paychecks declined. After adjusting for inflation, weekly earnings fell 4%, reversing nearly half the gains achieved during the previous four years.

On the employment front, the economy demonstrated remarkable resilience. The U.S. completed its recovery from pandemic job losses and added approximately 16.1 million jobs during Biden’s term. However, these figures are expected to undergo significant downward revision in 2026 through the Bureau of Labor Statistics’ benchmarking process, with a preliminary estimate suggesting a reduction of 911,000 in total employment.

Unemployment, which stood at 6.4% when Biden took office, fell to as low as 3.4% in April 2023 before settling at 4% when he departed. The average jobless rate during his presidency was 4.1%, well below the historical average of 5.7% since 1948.

Economic growth remained consistently strong under Biden, with real GDP increasing by at least 2.5% in each year of his presidency. Growth peaked at 6.2% in 2021 as the economy rebounded from the pandemic contraction, and registered a solid 2.8% expansion in his final year.

The stock market thrived during Biden’s tenure, with all three major indexes setting new records. The S&P 500 climbed 57.8%, the Dow Jones Industrial Average rose 40.6%, and the Nasdaq composite increased 48.7%. Corporate profits also continued their upward trajectory, reaching approximately $3.5 trillion in 2024—a 58.2% increase from 2020.

Consumer sentiment, however, fluctuated significantly. After plunging to a historic low of 50 in June 2022 amid surging inflation, sentiment recovered but remained below pre-Biden levels. The University of Michigan’s Index of Consumer Sentiment stood at 71.7 when Biden left office, 7.3 points lower than when he began.

On healthcare, the percentage of uninsured Americans declined under Biden. According to the National Health Interview Survey, the uninsured rate dropped by 1.5 percentage points, representing 4.4 million more people with coverage compared to 2020. Enrollment in Affordable Care Act marketplaces more than doubled, growing from 11.4 million in 2020 to 24.3 million in 2025, bolstered by more generous tax credits that Biden signed into law.

Crime statistics showed improvement across most categories. FBI data indicate that both violent crime and property crime rates decreased during Biden’s term, with the murder rate dropping from 6.7 per 100,000 population in 2020 to 5.0 in 2024, representing a 23% decline in murders. Motor vehicle thefts were the only category showing an increase.

Immigration presented significant challenges for the administration. Border Patrol agents encountered more than 7 million people attempting to cross the southern border illegally during Biden’s four years, nearly 265% higher than during the previous administration. While Biden implemented emergency policies in June 2024 that dramatically reduced illegal crossings in his final months, border apprehensions in his last year were still 107% higher than in the year before he took office.

Median household income, adjusted for inflation, increased by $2,150 or approximately 2.6% during Biden’s presidency. The official poverty rate declined from 11.5% in 2020 to 10.6% in 2024. However, the Supplemental Poverty Measure, which accounts for government assistance programs and necessary expenses, showed an increase in poverty, rising from 9.2% in 2020 to 12.9% in 2024, largely reflecting the expiration of pandemic-related stimulus payments and tax credits.

The federal debt held by the public increased by one-third under Biden, rising from $21.6 trillion to $28.8 trillion. Annual budget deficits, after declining from pandemic highs, increased again to more than $1.8 trillion in fiscal year 2024.

Domestic energy production thrived contrary to Republican claims, with crude oil production reaching record levels. Average daily production surpassed 13.2 million barrels in 2024, approximately 16.8% higher than in 2020. Records were also set in the production of natural gas, natural gas plant liquids, biofuels, solar, and wind energy.

As Biden’s term concludes, his economic legacy emerges as one of successful pandemic recovery clouded by persistent inflation—a complex picture that will continue to be debated as economists and historians assess his impact on the American economy.