If Trump Is Elected, Will Prices on These 5 Essentials Go Back Down?
Written by
J. Arky
Edited by
Jenna Klaverweiden
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With the U.S. presidential election just a few months away, there is a lot on American voters’ minds. One topic that’s on the table is the economy, with inflation continuing to push prices upward on basic goods and straining the bank accounts of the average American. If Donald Trump manages to regain control of the White House, some of these costs associated with essential products could potentially decrease.
Joseph Gutheinz, the general partner of Gutheinz Law Firm, predicted that prices and inflation would go down if Trump were elected. One of the reasons Gutheinz believes that this trend would happen is the opposing philosophies between the two candidates and their political parties. “Republicans disdain government intrusion into businesses and the wallets of taxpayers,” he said.
While the outcome of the election remains yet to be seen, GOBankingRates spoke with some business and economic experts to see whether prices on these essential items could go down if Trump is elected.
Healthcare
Going to the doctor might become a little less expensive should Trump win the 2024 election for the White House.
“President Trump has pursued policies aimed at reducing prescription drug prices and promoting competition in the healthcare industry. Continued efforts in this direction could potentially lead to downward pressure on healthcare costs, including the prices of prescription medications,” said Cynthia Asije, co-founder and CEO of Craftmerce Inc.
“Pro-business tax cuts could lower the company’s operational expenses, thereby leading to reduced consumer prices mainly in the healthcare … sector,” said Chuck Warren, host of the economic podcast Breaking Battlegrounds.
Housing
Many American voters will cast their ballots with the cost of housing on their minds, whether they are homeowners or renters.
“Trump’s policies have generally focused on stimulating economic growth and reducing regulatory barriers,” Asije said in regard to the prices of homes in the United States.
“While this approach may not directly address housing affordability issues, it could contribute to overall economic expansion and job creation, which could indirectly alleviate some pressure on housing prices,” Asije added.
Building Materials
The commodities that are required for construction and the overall development of infrastructure, such as steel and aluminum, were in a volatile state under the first Trump administration. In a potential round two, these materials could stabilize or even drop in price.
“In particular, the chaos that seemed to attach itself to the first Trump administration (not least his handling of the COVID pandemic) led to extreme volatility in all commodity prices,” explained Cory Johnson, chief markets strategist at The Futurum Group.
“Indeed, under Trump, the VIX index, a literal measure of market volatility, surged with an average annual volatility surpassing 100%,” Johnson said, adding that “voters will have to decide if they might get less volatile Donald Trump the second time around.”
Imported Goods
“Engaging in trade deals’ renegotiations could result in low tariffs, hence facilitating cheap imports, thus reducing the price levels of imported goods and inputs used for local production purposes,” Warren said.
“Abating regulations on industries can minimize costs related to conformity and therefore reduce the cost of goods and services,” Warren explained.
Energy
“The Trump administration has favored deregulation and supported the expansion of domestic energy production, including fossil fuels,” Asije said. “This approach could result in lower energy costs in the short term, as policies promoting production and exploration could increase supply and lower prices for consumers.”
Higher prices and inflation are first and foremost tied to the cost of fuel and electricity, in Gutheinz’s professional opinion. “America has an abundance of cheap oil, natural gas and coal,” Gutheinz said. “Trump and the Republicans are supportive of these industries.”
Andrei Vasilescu, the co-founder and CEO of DontPayFull, predicted that with deregulation, there could potentially be “a decrease from the $2.60 per gallon average for gasoline seen in 2020.”
He added that policy changes could alleviate financial pressures. “Given the rising energy consumption, which increased by 2.3% from 2018 to 2019, such policy shifts could ease financial pressures. As always, these are projections based on their previous policies, emphasizing the importance of staying informed as we approach the election,” Vasilescu said.
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