Impact of a President Trump Economy on Your Finances

So it’s not only politics that is crazy so far, but so is winter, as parts of north Florida saw up to ten inches of snow. I’ve been mentioning the snowball effect of debt coming into play with a Trump economy, so I guess I’m right on two levels.

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The snowball effect is a method or strategy to reduce debt. The idea is to pay off smaller credit cards with smaller balances, close them out, and continue the process until you reach the credit card with the highest debt total. However, my comparison is the reverse, meaning that we might be getting into more debt with a Trump economy.

In a prior video and blog post, I explained that due to my car being totaled due to hurricane damages, which will result in my debt total increasing by $8,000 because we are buying a new car, the Trump tariff would make the exact vehicle cost me $4,000 more. It is as simple as something beyond your control could increase your overall debt, hence the concern with the Trump economy.

• How Will the Trump Economy Affect You?

Nothing has changed with the car. There are no upgrades, no leather package, nothing. Yet, I would be paying $4,000 more. That’s why I am talking about the Trump economy, the Trump tariff, and the possible snowball effect, where we get into more debt.

This blog will cover several issues with a Trump economy, so let’s start with the costs of medications for Medicare and Medicaid beneficiaries.

Lowering Prescription Drug Costs for Americans

I’ll start with the concern about the cost of medications. Executive Order 14087 by President Biden is called the Lowering Prescription Drug Costs for Americans. It was done as a way to streamline the process and lower costs. The Center for Medicare and Medicaid was able to get certain generic drugs down to $2.00 for Medicare beneficiaries.

Remember, the Biden administration was also touting $35 for insulin shots. With Trump’s executive order overturning Biden’s Executive Order, does that mean seniors will pay more for medication? Yes and no.

It’s already been reported that some seniors are already paying more for their medications. President Trump’s replacing Biden’s Executive Order does open the door for Big Pharma to come in and say, “Well, we’re not obligated under those numbers anymore. Instead of selling it for $2.00, we sell it for $20.” So, ultimately, it’s up to the pharmacy industry until new contracts are negotiated.

This is why I keep hammering the issue that our expenses could increase, resulting in more debt, even though we haven’t changed anything financially individually. The next thing I want to talk about is AI.

The President Trump Economy and the Push for AI with Stargate

President Trump announced he is passing an initiative of $500 billion to be at the forefront of AI. We need to be ahead of China and the world on the issue of artificial intelligence. It’s a great idea, but what does this mean financially? How does this affect the job market? By the way, Elon Musk did state that the funding wasn’t available, but even then, it is safe to assume an initiative will go through.

If you’re in the AI industry, this is great news; I’m not so sure for the rest of us, that even includes Wall Street. By the way, even Mark Zuckerberg said that Meta would eliminate middle-level software engineers because they could already have AI coding done in a recent podcast with Joe Rogan. So, no one is immune from the financial wrath of AI.

President Trump and the Equal Employment Opportunity Act

Eliminating Diversity, Equity, and Inclusion (DEI) has been in the Republican’s political crosshairs for a while. With President Trump, the White House memo states they are trying to protect the civil rights of Americans and expand individual opportunity “by terminating radical DEI preferencing in federal contracting and directing federal agencies to combat private sector discrimination.”

This dates back to “LBJ” President Lyndon Baines Johnson and the Department of Labor. The order prohibited federal contractors from discriminating based on race, color, religion, sex, sexual orientation, gender identity, or national origin.

This does open the door for discrimination. Also, we’ve already seen the immigration raids in effect. If the immigration raids continue, which they will, the result is a labor shortage in construction, not to mention farming.

Developers depend on immigration to keep the cost of housing down. If migrants are being deported, even arresting them for minor infractions, it sounds great that you catch a criminal, but let’s think critically. What’s the crime? A DUI or theft from Walmart? Is this the most critical person to kick out of the country?

There are real criminals like rapists, thieves, and murderers that should be the focus. But the Trump Administration is casting a wide net to catch those convicted of petty theft cases, DUIs, and even misdemeanor trespassing.

When I was practicing criminal law, judges would even say DUIs don’t result in deportation. That no longer seems true for Sanctuary cities and locations such as churches, schools, and even courts. Remember, during the first Trump presidency, State District Judge Shelly Richmond was arrested because ICE was waiting outside, so the judge had the immigrant leave through a private exit.

Now, with the ICE raids, this clearly will lead to a labor shortage. Continuing with the snowball effect, this means the cost of housing increases. President Trump signed an Executive Order requiring the reduction of regulations which does affect up to 23.5% of housing costs. So that is a step in the right direction. However, if the labor shortage increases, then at the minimum, one issue cancels out the other.

Jamie Dimon Thinks You Should Get Over It

Finally, I want to talk about the Trump tariffs. In an interview, Chase CEO Jamie Dimon said that in response to the Trump tariff, we should “Get over it.” It is easy to say when the rich pay minimal taxes. But here’s the problem with the Trump tariffs.

Countries hit by the tariff will retaliate. A large percentage of our country gets lumber from Canada. In turn, Canada will increase the price of lumber, increasing home-building costs. Add the labor shortage, and now housing will skyrocket.

So, is now the time to get into more debt? Let’s go back to that snowball effect. If you have a federal government job that you could get through DEI, you might lose it. You have to cut back on your expenses. Not spending money hurts the economy. That’s why I keep saying the snowball effect applies to everyone. It doesn’t matter if a tariff hits you directly or indirectly, but it will affect you.

Chaos creates political instability, and political instability creates financial instability. We are all facing a situation where seniors’ medical expenses could increase. Housing costs could increase, and everyday household expenses and products could also increase.

By the way, this political talking point about immigrants getting benefits is not true. Immigrants pay taxes but don’t receive the benefits that come with them. It’s reported up to $100 billion in state, local, and federal taxes.

So, analyze your financial future. Is your job at risk? Is your job at risk because of AI or DEI policies?  Ask yourself, “How is this going to affect you?”

If you have any questions or comments, please post them in my YouTube video, which can be seen below. Reach out to me. Thank you to all my new subscribers each and every day. Thank you so much. I hope tomorrow brings everyone wealth and financial comfort as you continue your debt-free journey.

In the meantime, take care of yourselves and be careful financially.

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Photo Credit: This work is in the public domain in the United States because it is a work prepared by an officer or employee of the United States Government as part of that person’s official duties under the terms of Title 17, Chapter 1, Section 105 of the US Code. https://x.com/VP/status/1882163616646132011/photo/1. (Vice-President J.D. Vance’s X page.)