I’m an Economist: Here’s 4 Ways Trump’s VP Pick, JD Vance, Could Impact Gen Z’s Finances
Written by
Maggie Ethridge
Edited by
Nicholas Morine
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When former president Donald Trump picked JD Vance as his vice presidential nominee, many Americans knew little to nothing about Vance’s political stances or background. While previously being most well-known for his memoir, “Hillbilly Elegy,” Vance’s political positions have emerged slowly for the American public to consider.
Vance is a millennial — born Aug. 2, 1984 — and grew up in Middletown, Ohio. Much closer in age to Gen Z (born between 1997 and 2012) than Trump, Vance might have political opinions that reflect more specific concerns for Gen Z.
Christopher L. Stroup, founder and president of Silicon Beach Financial, believes there are some key Gen Z concerns that JD Vance would possibly affect if he were elected VP.
Advocating for a Higher Minimum Wage
“JD Vance has been an advocate for increasing the federal minimum wage,” Stroup said. “He previously co-sponsored legislation that would bring the national federal minimum wage up to $11 per hour.”
An increase in the federal minimum wage affects all generations working at that level, but would disproportionately impact zoomers and millennials. A higher minimum wage “is a rising tide that would raise all boats, including Gen Z,” Stroup affirmed.
Expansion of Cryptocurrency With Less Regulation
Gen Z has a powerful level of interest in cryptocurrency, with data showing that it is both Gen Zers and millennials who are the largest population driving the crypto market.
“JD Vance has been a proponent of the cryptocurrency industry while being a staunch advocate against attempts by the current administration to regulate it,” Stroup said. “The expansion of cryptocurrency could open up a world of investment opportunities that has the potential to empower Gen Z as they begin to take ownership of their finances.”
Potential Headwinds Concerning Student Loan Forgiveness
Gen Z is the most impacted by any policies regarding college, and student loan debt is one of the largest concerns of both students and parents. The impact of these debts on Gen Z is to be determined, with changes in policy coming as the government works to relieve debt for millions of former students. The Biden-Harris administration recently proposed new policies that would increase the number of students who receive debt relief to about 75% of federal loan borrowers.
Stroup said: “A Trump-Vance presidency could mean a continuation of messages from former President Trump’s first term, like the elimination of Public Student Loan Forgiveness or closure of the Department of Education. If enacted, this would result in the removal of Pell Grants, work-study opportunities, and even federal student loans. This would make affording college more challenging for Gen Z as they’d have to rely more heavily on high-interest loans.”
Making Elements of the Tax Cuts and Jobs Act of 2017 Permanent
“Certain aspects of the Tax Cuts and Jobs Act of 2017 are set to expire in 2025,” Stroup said. The Tax Cuts and Jobs Act of 2017 was a specific set of policies that cut taxes for individuals and businesses, and the cuts for individuals will expire the last day of 2025.
Stroup said, “There has been interest from the Trump-Vance candidacy to make certain items permanent, such as the lowered tax brackets or higher standard deduction. Gen Z could expect to find themselves paying lower taxes and benefiting from more tax breaks if implemented.”
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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