Could The Trump Presidency Be Bad For You

Could The Trump Presidency Be Bad For You

trump presidency

Blog (MP) As the Trump presidency prepares to take over the government, many want to know, what will his administration’s policies mean for the country? Trump promised his constituency that he would shake up Washington.   Now he has to deliver, and he plans to start by getting tough the moment he takes office.  Here’s what you can look forward to during Trump’s reign.

Healthcare
Since the Affordable Care Act was enacted in 2010, over eight million people signed up for private health insurance through the Health Insurance Marketplace. Yet what many people term “Obamacare” has been nagged by complaints about rising healthcare costs, loss of specific providers and some insurance companies leaving the Marketplace altogether.

Trump sees the Affordable Care act as deeply flawed. He has vowed to ask Congress to repeal Obamacare on day one of his presidency. That means if you have insurance through the Health Insurance Marketplace, your coverage could be affected.

However, that doesn’t mean you won’t have insurance or will lose access. The Affordable Care Act was designed to address major issues with the insurance industry, such as the practice of denying coverage to people with pre-existing conditions. Trump has said that he would keep this benefit in his new healthcare plan.

Trade Policy
Trump is threatening to impose tariffs on products shipped into the United States from China and Mexico. His transition team has also floated the idea of a 45% tariff on all imports from China and around the world.

That would raise prices for Americans because companies that import from China, Mexico and elsewhere often pass along extra costs to consumers.

If your employer does business in Mexico or China or ships in products from them, there’s a chance your job could even be at risk. Millions of American jobs depend on trade with those two nations. If trade shrinks, those jobs could disappear.

Jobs
Trump built his campaign on promises to bolster the economy with new jobs. Particularly for those in manufacturing, mining, or energy fields, a Trump presidency means better job security and future growth potential.

While Trump will face difficulties, both from politicians and leaders worldwide, he has vocally voiced his opposal of the Trans-Pacific Partnership. The 12-nation agreement lowered tariffs on foreign cars while leaving in place policies that prevented American cars from being sold in partner countries. And according to Trump, the partnership made it easier for countries to export their goods to the U.S. while preventing our own goods from being sold abroad.

Trump aims to supplant the Trans-Pacific Partnership with a new trade deal that would spur manufacturing and other facets of the economy.

Taxes
He plans to lower rates for businesses and individuals, although low-income families may end up paying more. His proposal calls for just three tax rates for people: 12%, 25%, and 33%. He would slash businesses taxes to 15% (down from a high of 35%).

National Security
One of the key features of Trump’s campaign was his promises to veterans. With veteran benefits’ horribly damaged, many service men and women go without the care and benefits they earned due to systemic issues. Trump says he will fix those problems, so those who are in the military or who served in the past should be able to more easily access the benefits they deserve, such as for education or healthcare.

Trump also plans to strengthen the military, investing in all branches as well as cyber security to fend off modern threats. While the Obama administration often cut military spending, Trump promises to provide more funding for national security.

Women
Since Roe v. Wade was decided in 1973, Democrats and Republicans have battled over efforts to restrict abortion rights. Prior to running for president, Trump did not focus on abortion and even espoused pro-choice views. However, as the Republican presidential candidate, he staked out pro-life positions, a shift that helped him gain support from social conservatives in the Republican base. Trump pledged to appoint conservative Supreme Court justices who will overturn Roe v. Wade.  And with Mike Pence at his side, a man who signed numerous abortion restrictions into law as governor and championed proposals to restrict abortion and defund Planned Parenthood while serving in Congress, the death of Roe v. Wade may be in sight.

Energy
As Trump expands support for the USA’s coal industry the switch towards higher gas consumption is likely to stall, while an increased focus on energy independence could see higher natural gas supply.

If growth in the US slows it will be negative for industrial metals like copper and aluminum as demand from construction and automotive sectors slows. However, calls for more infrastructure spending could be a boon for metal demand as the country’s aging infrastructure is updated.

Trump also has surrounded himself with advocates for traditional energy sources and climate change skeptics. This may lead to reduced investment in renewable energy sources in the US and electric cars. Together this may reduce demand growth for ‘energy’ metals such as lithium, cobalt etc.

Agricultural
Commodities like sugar, coffee, and soybeans are likely to fare the worst as emerging market currencies like Brazil’s fall against the US dollar. A fall in their currencies increases the incentive to export.

College
Trump vows to hold colleges accountable if they don’t lower tuition. He has threatened to take away the tax-exempt status of college endowments. He also wants to forgive student loan debt after 15 years of full payments instead of 20.

Child care
Making child care affordable was a big pledge of both Trump and Clinton.  A Trump presidency may mean letting parents deduct child care costs up to the average in their state for their children’s age, as he’s stated during his campaign. He also wants to let new mothers six weeks of maternity leave where they can collect unemployment payments.

Retirement
Don’t expect Social Security to change under the Trump presidency. He didn’t call for any tweaks on the campaign trail.

 

Don Briscoe
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Don Briscoe

Finance educator, advisor, and leading voice in the global financial literacy movement.Founder and editor of MoneyPacers.com.He lives and enjoys life with his family in New York.
Don Briscoe
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