I’m an Economist: 4 Reasons Why Trump’s VP Pick JD Vance Should Concern Middle Class Workers
Written by
Terence Loose
Edited by
Travis Woods
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J.D. Vance made a name for himself by writing “Hillbilly Elegy,” an emotional and insightful novel about Appalachia, and painting himself as a champion for middle America’s struggle against corporate interests. But do his political views and policy beliefs as a potential VP match his rep? Some say no.
“A Trump-Vance Administration would continue to benefit the wealthiest in the country at the expense of the middle class,” said Zach Friend, a public policy and government relations expert. “Both have openly called for reforms and cuts that would negatively impact middle class health coverage, increase costs through new import policies that would impact prices for the middle class and tax proposals that would drive up the deficits and cut programs most used by low and middle-income workers,” he said.
Here are four specific areas a Vance VP could be worrisome for the middle class.
Disproportionate Tax Burdens
Based on Trump’s first administration’s tax cuts, a Trump-Vance win could mean extending the 2017 Trump tax cuts, which favor the wealthy at the expense of the middle class, according to Michael Collins, CFA and founder and CEO of WinCap Financial. “Both J.D. Vance and Donald Trump have been vocal supporters of tax cuts for the wealthy and corporations,” he said. “This has been a key aspect of Trump’s first administration, with the controversial Tax Cuts and Jobs Act being passed in 2017.”
In fact, a report by the Center on Budget and Policy Priorities found that that white households in the highest-earning one percent received 23.7% of the tax cuts, while the bottom 60% of households of all races netted only a 13.8% share. If the Trump-Vance administration continues to prioritize these cuts, Collins said, it “could mean reduced government revenue and potentially lead to cuts in important social programs and services that benefit middle-class Americans.”
Heavy Impacts to Union Workers
Union workers have always been a key element of the middle class, but if Trump and Vance win in November, they could be one of the most adversely affected groups, said Corey Pollard, a workers compensation lawyer and union workers advocate. “The economic policies advocated by Vance and the Republican Party could impact job security for union workers,” he said. “For example, if there is a push for deregulation or tax cuts for corporations, it could lead to job losses in sectors heavily represented by unions, such as manufacturing and transportation.”
In addition, he said “If Vance supports policies that weaken labor unions or reduce collective bargaining power, union workers could find it more challenging to negotiate fair wages and benefits.” This could lead to a decline in job security and financial stability for the middle class, he said.
Worse Healthcare
Changes in healthcare is another area in which a Trump-Vance ticket could negatively impact the middle class, said Collins. “J.D. Vance has expressed support for repealing the Affordable Care Act, and while Trump was unable to fully repeal the ACA during his first term, he did weaken it by removing the individual mandate penalty and expanding access to short-term health plans with fewer coverage requirements,” he said. If Trump and Vance continue this approach, it could destabilize the healthcare market, leaving millions of middle class Americans without adequate coverage, said Collins.
Pollard agreed. He said that if Vance pursues policies that reduce or privatize public healthcare, it could impact those who depend on employer-sponsored health plans. “Changes in healthcare policy can lead to increased out-of-pocket expenses for workers, which could strain household budgets and diminish overall financial security,” he said.
Stagnant Wages
On a broader scale, a Trump-Vance win and their subsequent economic and immigration policies could have industries-wide effects for the middle class and beyond, Collins said. He said the middle class should be concerned about Vance’s stance on economic issues that are particularly relevant to the middle class, such as job creation and wage growth. For instance, despite Vance’s claims, it’s doubtful Vance’s policies would revitalize manufacturing. “There is also the risk that their immigration policies may have a negative impact on industries such as agriculture and construction, which rely heavily on immigrant labor.”
Pollard added that Vance and Trump’s economic policies, which tend to heavily favor corporate interests, will lead to stagnant wages for middle class workers, especially those in the manufacturing sector and unions.
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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