By Charles Switzer
9:00am PDT, May 2, 2025
Trump's Economic Blame on Biden
President
Donald Trump's attempt to place the blame for the U.S. economic contraction on his predecessor,
Joe Biden, has been met with skepticism in the business community. Despite the U.S. economy contracting in the first quarter, largely due to Trump's own tariffs on most imports, he continued to deflect responsibility.
Trump posted on social media, stating, "Our Country will boom, but we have to get rid of the Biden 'Overhang.'"
He further added, "This will take a while, has NOTHING TO DO WITH TARIFFS, only that he left us with bad numbers, but when the boom begins, it will be like no other. BE PATIENT!!!"
But Wall Street wasn't hearing any of it, and the nation's premier financial sector reportedly had a laugh at Trump's expense.
Here's what happened.
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CNBC's Steve Liesman Responds
On the Thursday, May 1, episode of
Deadline: White House on MSNBC, CNBC's
Steve Liesman addressed Trump's claims, telling host
Nicolle Wallace that Wall Street was not buying into his deflection.
"Well, he tried yesterday to blame the stock market on Biden," Liesman remarked. "And I think there was a lot of laughter around Wall Street, I think on that one. I think that people pretty squarely put this on the shoulders of President Trump."
Economic Struggles and Supply Shock
Steve Liesman went on to discuss the economic situation, warning of a looming "supply shock" that cannot be easily resolved.
"This supply shock is not easily handled through the normal tools that we handle downturns in, which is that you end up trying to get people to buy more," he explained. "But if the problem is that there's not enough stuff and people are losing their jobs because of that, goosing demand is not gonna help."
Concerns Over Decreasing Government Spending
Steve Liesman also highlighted a critical concern about the economic response, noting that
government spending was decreasing at the same time the supply shock was intensifying.
"The normal circuit breaker on this tends to be government spending. And what's happening with government spending, that's coming down, at the same time, you have the supply shock," he said. "So, we could be in for a twofer here over time."
Public Reaction
On social media, several users criticized President Donald Trump's attempt to deflect responsibility.
One user on X wrote, "Blaming Biden for the economy when your own tariffs have hurt businesses and consumers doesn't add up. Stop dodging accountability."
Another post from a business analyst stated, "The market knows where the responsibility lies — Trump's tariffs are playing a huge role in this downturn, not Biden's policies."
In contrast, there were also supporters who rallied behind Trump's claims, with one X commenter sharing, "Trump is right! The Biden administration's policies are definitely making things worse. Let's get back to what worked under Trump."
