Trump Policies Revive Economy After Biden Missteps

Inflation down, jobs up, and paychecks go further under Trump's second term

Published on Feb. 15, 2026

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The White House and the nation are celebrating a strong economic turnaround in the first year of President Trump's second term, with falling inflation, a robust labor market, and rising purchasing power for American workers. This reverses the economic struggles under the previous Biden administration, with the Trump team's tax cuts, regulatory reforms, and downsizing of the federal bureaucracy credited for the comeback.

Why it matters

The economic recovery under Trump's policies marks a significant course correction after the struggles of the Biden era, when inflation outpaced wage growth and the private sector lost jobs while government bureaucracy expanded. The Trump team's strategy of shrinking government and empowering the private sector appears to be paying dividends for American workers and consumers.

The details

In just one year, the Trump administration has reduced the federal workforce by over 300,000, bringing it to the lowest level since 1966. As government jobs declined, private sector employment grew by over 170,000 in January. This reverses the trend under Biden, when government jobs grew while the private sector shed 76,000 positions. Trump's tax and regulatory reforms, along with his administration's energy policies, have also contributed to the economic turnaround, with inflation dropping to 2.4% in January and core inflation at its lowest level in nearly five years.

  • In January 2025, the private sector lost 76,000 jobs, while government jobs grew by 28,000 under the Biden administration.
  • In January 2026, private sector employment grew by over 170,000 under President Trump's policies.

The players

President Trump

The 45th and current President of the United States, who is in his second term after defeating Joe Biden in the 2024 election.

Joe Biden

The 46th President of the United States, who served one term from 2021 to 2025 before being defeated by Trump in his re-election bid.

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What they’re saying

“The White House and America at large have much to celebrate after the last week of economic reports.”

— E.J. Antoni, Chief Economist and Richard Aster Fellow at the Heritage Foundation, Senior Fellow at Unleash Prosperity (nypost.com)

What’s next

The Trump administration is expected to continue its economic policies of tax reform, regulatory relief, and downsizing the federal bureaucracy in order to further boost the private sector and drive down inflation.

The takeaway

President Trump's economic strategy of shrinking government, cutting taxes and regulations, and empowering the private sector has succeeded in reversing the economic struggles of the Biden era, with falling inflation, a robust job market, and rising purchasing power for American workers.