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Investor's Crypto Daily > Blog > Headlines > Economy > Economic News > Fact-checking Trump’s Inaugural Speech: From the Panama Canal claim to inflation records
Economic News

Fact-checking Trump’s Inaugural Speech: From the Panama Canal claim to inflation records

Last updated: January 20, 2025 9:28 pm
By Ronald Dupree 6 Min Read
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Donald Trump, the new President of the United States of America was inaugurated on Monday. He delivered a passionate inaugural speech in which he promised “The Golden Age of America”.

Contents
Claim 1: Migration policies protect dangerous criminalsClaim 2: China controls Panama CanalBiden’s inflation was a record-breaking rateClaim 4 : Tariffs are paid by other countries and they enrich Americans

“My recent elections are a mandate for reversing a terrible betrayal, as well as all the many betrayals which have occurred, to give back people’s faith, wealth, democracy and freedom. Trump declared that America’s decline was over.

The speech was full of sweeping rhetoric but also contained many unsubstantiated statements and inconsistencies.

Here is a fact check by – ICD.

Claim 1: Migration policies protect dangerous criminals

Trump’s words: During his inaugural speech, Trump stated that the Biden Administration “provides refuge and protection to dangerous criminals from prisons, mental institutions and other countries who have entered the United States illegally.”

Fact Check: Trump claimed in the past that other governments intentionally empty prisons and mental hospitals to send immigrants to the US. However, there is no proof to support this assertion. The campaign of Trump hasn’t provided any data that would corroborate his claims.

Sometimes, the president has tried to back up his story by claiming that global imprisonment is on the decline. This is incorrect.

According to the World Prison Population List compiled by UK experts, the prison population worldwide increased between October 20,21 and April 2024 from 10,77 to 10,99 million. This contradicts any claim that prison populations were declining due to immigration.

Context Although some migrants have had a past of mental illness treatment or incarceration, there are no solid evidences to support a systematic effort on the part of foreign governments to bring such people to the US.

Claim 2: China controls Panama Canal

Trump’s speech: Trump stated that “China operates the Panama Canal… We gave it to Panama and we will take it back.”

Check your facts: In Panama, the Panama Canal Authority is a government-run agency.

The Wall Street Journal , which is the official publication of the ACP and its leader, Ricaurte Vasquez Morales confirmed earlier in this month, that “China does not have any involvement at all” with our operations.

Trump’s allegations likely come from the fact Chinese companies manage the ports close to the canal, including the Hutchison Ports sub-company Panama Ports Company.

Long-term leases are held by these companies to operate Balboa Port and Cristobal Port, the entry and exit ports of the Canal.

Context While Trump’s claim that China controls the canal was false, the growing influence of China in the global shipping industry and the port infrastructure is causing concern among US officials. They are concerned about the Chinese government’s ability to pressure companies into disrupting commercial or military shipment during conflict.

Biden’s inflation was a record-breaking rate

Trump’s comments: Trump called the inflation rate during Biden’s presidency “record inflation” and promised to deal with it immediately.

He said: “I will then direct my cabinet to use the immense powers they have at their disposal in order to combat what had been record inflation, and to rapidly reduce costs and prices.”

Fact Check: According to the Bureau of Labor Statistics, inflation during Biden’s presidency reached 9% by June 2022. This was the highest rate in over 40 years.

Inflation rates were often higher than 10% in the 1970s, 1980s, and even March 1947, when they reached a post World War II peak of 19,7%.

Inflation peaked during Trump’s tenure at 2,9% mid-2018, and dropped to as little as 0,1% in May 2020 when the COVID-19 Pandemic hit.

Context Although Biden’s rates of inflation were high, framing it as “record breaking” is ignoring the historical context. This includes inflation spikes that occurred in previous decades because economic conditions varied.

Claim 4 : Tariffs are paid by other countries and they enrich Americans

Trump’s comments: Trump renewed his claim, which he has made for years, that the tariffs paid by exporters during his tenure as president were a result of foreigners enriching America.

Check your facts: According to studies, such as one conducted by the US International Trade Commission (a bipartisan commission), US importers pay tariffs, and not exporters from other countries.

The cost of these costs is often passed onto US consumers as higher prices.

During Trump’s first presidency, the cost of household items, electronics and other imported goods from China increased.

Context Although Trump has proposed to create an External Revenue Service (ERS) in order to collect revenue from tariffs, it is the reality that tariffs are a burden that falls disproportionately on US consumers and businesses, rather than foreign governments.

The post Fact-checking Trump’s Inaugural Speech: From the Panama Canal to inflation records, this article may change as new information becomes available.

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