The People Have Spoken, Now What?

On November 5, 2024, the voters of this nation elected Donald J. Trump as our next president. While many are overjoyed with decision, just as many are not. The current divide in this country has caused many to reflect and pontificate on why voters chose Trump. Was it fear, his perceived machismo, misogyny and or racism? Many pundits do seem to agree that voters in large part selected Trump because of frustration with high prices and a true belief that under his leadership things might change and Americans – all Americans- will benefit financially from a Trump administration.

A close examination of the country’s current economic picture shows slowing inflation, wage increases, a relatively low unemployment rate and a robust stock market. These factors however have not trickled down to more money in our pocketbooks. Will any of Trump’s suggestions in his economic plan help? Let’s take a closer look.

Throughout the campaign season we constantly heard about tariffs. Tariffs are taxes paid to the federal government on imported or exported goods. The Trump plan promises to impose tariffs of at least 10% tariff on all goods coming into the US, and 60% on all goods coming from China. Economists agree that most companies will pass the added cost of tariffs on to consumers by increasing the prices of the goods. Prices that Americans already think are high, could become higher.

Another plan espoused by Trump is mass deportation of undocumented immigrants, under the assumption that this will make more jobs and housing available to citizens. However, mass deportation could prove to be extremely detrimental to the U.S economy. The agricultural and construction industries rely heavily on undocumented workers, and more that 1 million undocumented immigrants are entrepreneurs that generated more than $ 27 billion in income in 2022. A mass deportation of undocumented immigrants will disrupt services and impact resources that are integral to our daily lives. Supply and demand will be impacted, and the U.S economy could be severely reduced.

These are just two contradictions that will surely affect our economy, and households, and our path to financial freedom in the coming days. Remain diligent and continue to focus on your plan. Now more than ever we must be informed and engaged.