4 Ways Trump Might Keep Your Money Safest as President
Written by
Laura Beck
Edited by
Chris Cluff
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The 2024 presidential race is heating up and many Americans are wondering how it affects their lives — especially their financial lives. While opinions vary widely, a recent GOBankingRates survey shows that 37.35% of respondents believe Donald Trump’s policies would keep their money safest if he were elected president in November 2024.
We spoke with financial experts to find out how Trump’s potential financial policies might affect Americans. Here are four ways Trump might keep your money safest as president.
Some Tax Cuts
Trump’s tax policy has been a cornerstone of his economic approach. Anthony DeLuca, expert contributor at Annuity.org, explained, “One of the bigger dialogues surrounding former President Trump’s first term was the Tax Cuts and Jobs Act in 2017, which was supposed to create tax relief for all Americans.”
While DeLuca said the top 1% saw significant benefits, he added that middle-class Americans saw much more modest gains: “The middle 20% of America will only realize about $80 a month.”
“Trump’s plan to lower taxes across the board, including corporate, Social Security and restaurant tips, could have an immediate appeal to your wallet.” said Ethan Pickner and Steve Kelly, investors and partners at AZ Health Insurance Brokers.
However, they caution that there could be “potential longer term inflationary and adverse effects to consider.”
Potentially Stimulating Domestic Production
Trump’s often talks about boosting American manufacturing.
“Former President Trump’s universal tariffs on U.S. imports would force more domestic productivity. It would also stimulate companies based in America,” DeLuca said.
This approach could lead to more job opportunities and potentially higher wages for American workers.
However, DeLuca warned of a potential downside: “The caveat to this is the potential inflation kick that would occur from consumers having to rely on more costly products versus what could be gathered from imports.”
Cutting Business Regulations
Trump’s anti-business regulation stance is another thing the experts pointed out.
“It’s also very well known that Trump’s pro-business policies look to cut compliance and regulation costs,” DeLuca said. “That in turn will help small-to-medium-sized businesses and reduce the cost of goods and services.”
This could potentially lead to lower prices for consumers and more growth opportunities for businesses, which might translate to job creation and wage increases.
Potential Stock Market Growth
During Trump’s first term, the stock market saw some gains.
“The Dow Jones returned over 55% during former President Trump’s first presidency,” DeLuca explained. “This productivity showed in consumer confidence.”
For comparison, the S&P 500 climbed 85% during President Barack Obama‘s first term and 79% during President Bill Clinton’s first term.
It’s unknown what would happen during a potential second term for Trump, but Americans would like the stock market to see more gains.
Stay Focused on Your Personal Finances
While Trump’s policies might offer potential benefits for some Americans’ wallets, particularly through tax cuts for high earners and possible economic stimulation, they also come with potential risks and uncertainties.
Economic policies can have complex and sometimes unpredictable effects. Amy Arnott, portfolio strategist at Morningstar, offers a balanced perspective: “Even if we could accurately predict who will be elected ahead of time, there is no way to forecast exactly how a Trump or Harris presidency could affect people’s finances.
“There are many other factors — such as whether Republicans win control of the Senate as well as the House and the specific provisions that end up being included in any legislation that’s eventually passed — that will impact the economy and the markets.”
Arnott thinks investors should “focus on their long-term financial goals and tune out election-related speculation. No matter who is president, the long-term market trajectory is almost always positive.”
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. For more coverage on this topic, please check out 6 Ways Kamala Harris Might Keep Your Money Safest as President.
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