Photo by Jeremy Bishop on Unsplash

Introduction

The US economy showed robust growth in the last quarter of 2024, though at a slower rate than the previous quarter, highlighting an ongoing expansion. GDP grew by 2.3% in the final three months of the year, down from a 3.1% growth rate in the third quarter, according to official data. This comes amidst promises by President Donald Trump to revive the economy and reduce prices for Americans.

Conservative Perspective

From a conservative viewpoint, the slowed yet robust growth of the US economy is a confirmation of Trump’s economic policies that aim to spur domestic production and strengthen the national economy. Conservatives argue that the previous administration left behind an economy beleaguered by inflation and stagnant growth. They see Trump’s approach to tariffs as a strategic move to bolster US manufacturing and reduce reliance on foreign imports, thereby potentially creating more jobs for American workers. Furthermore, maintaining stable unemployment levels is seen as indicative of a healthy job market.

Liberal Perspective

Liberals, however, express skepticism about the sustainability of Trump’s economic tactics, particularly his tariffs plan. They caution that additional tariffs may exacerbate inflation, contradicting efforts to reduce living costs. While the GDP growth numbers remain strong, liberals note that economic expansion should focus on inclusive growth that addresses inequality. They point out that household consumption drove most of the GDP growth, suggesting that immediate consumer behavior, spurred by tariff fears, might not be a long-term growth strategy. Concerns are also raised about the Federal Reserve being under pressure from the Trump administration regarding interest rates.

Conclusion

As the US economy continues its progress, albeit at a slower pace, the nation finds itself at a crossroads, balancing between fiscal conservatism and the need for sustainable, inclusive growth. With debates ongoing over tariffs and their potential impact on inflation, all eyes remain on the Trump administration’s forthcoming economic policies and their influence on the broader economy. Observers, including the Federal Reserve, continue to watch closely, mindful of the nation’s economic prospects.