Grant Cardone: Here’s Why a Trump Presidency Would Be Good for the Job Market
Written by
Gabrielle Olya
Edited by
Chris Cluff
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The July jobs report from the Bureau of Labor Statistics revealed an unexpectedly weak job market. The report found that 114,000 new jobs were added, falling short of the projected 175,000, while unemployment hit 4.3%, the highest level since October 2021.
Grant Cardone, a private equity fund manager and real estate investor, believes things could turn around if Donald Trump is elected president in November.
Trump Would Incentivize Hiring Through Lower Taxes
Cardone believes that Trump would lower taxes and provide more tax incentives for business owners. This would translate into businesses being able to afford to hire more domestic employees.
“Anytime you provide tax incentives, you’re going to encourage investing,” Cardone told GOBankingRates. “This is the love language of a businessperson: lower taxes and higher incentives for me to take risks.”
What Other Experts Think
Lauren Winans, CEO at Next Level Benefits, an HR consulting practice, believes it could be a mixed bag for the job market if Trump carries through on his policy promises. She agrees with Cardone that tax cuts could have a positive effect on the job market.
“Lower taxes and deregulation might encourage businesses to invest and expand, potentially creating jobs,” she said. “Industries like manufacturing, energy and finance might benefit, potentially leading to job growth in these areas.”
The effect of Trump’s proposed trade policies is not as straightforward.
“Protectionist trade policies could lead to job creation in certain domestic industries,” Winans said, “but might also result in higher costs and job losses in industries reliant on international supply chains.
“A Trump presidency could lead to job creation in specific sectors but might also introduce economic uncertainties that could affect overall employment levels.”
Lauren Saidel-Baker, an economist with ITR Economics, does not believe the outcome of the election will have a profound effect on the job market, no matter who wins.
“Historically, the political party of the president does not have a consistent and significant impact on real economic outcomes such as GDP, industrial production or the labor market,” she said. “We do not expect the results of the presidential election to materially affect the job market.
“At the margin, some companies may have been delaying hiring decisions this year in a ‘wait and see’ approach to political uncertainty,” Saidel-Baker continued. “However, this impact is likely overshadowed by hiring hesitancy caused by the current high interest rate and slowing macroeconomic environment.”
Saidel-Baker predicts that job growth will continue to slow no matter what happens in November.
“In July, U.S. private sector employment stood at a record-high 136.3 million workers. Employment has been building on record-high levels since August 2022, although the rate of growth is slowing,” she said. “We expect further slowing growth this year — regardless of the election outcome — as the rate of change normalizes from a stimulus-fueled, abnormally high rate and as the macroeconomy generally cools throughout the remainder of 2024.”
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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