President Trump states that his economic proposals will eliminate inflation and cut into our national debt. Is he correct? Let's delve in! The core proposals of Trump's plan are a permanent renewal of the 2017 tax cuts plus tariffs on every import that our country takes in. First, the extension of Trump's 2017 tax cuts would weaken the US dollar making it harder for America to borrow money from our debtors. Trump's 60% tariffs across the board on goods coming from China would be in fact a tax hike of $300 billion on Americans. In addition, the easing of the dollar will make inflation grow hearby decimating the dollar even more. According to three economists at Moody's Analytics, a potential Republican sweep considering the tax package they are running on will raise inflation by 20% by 2026. Additionally, Trump's campaign promise of deporting 15-20 million undocumented immigrants will in fact raise wages for businesses that depends upon cheap labor. This means that these companies will have to jack up their pay for filing in those unfilled positions forcing the increase of the inflation rate even more. Furthermore, the elimination of Federal Transit Commission (FTC) as stated in the Project 2025 handbook will deprive people of having cheap transportation hereby forcing Americans to spend more money to go anywhere.
This means people will surely add to the inflationary circle of Trumpomics by always needing to go to places in their vehicles According to an analysis by the non-partisan Tax Foundation, President Trump's economic proposals would hurt both American workers and businesses by pursuing costly trade wars with China and the European Union. This means if President Trump is reelected, the prices of food and groceries will surely go higher on the American public. Michael Strain, the director of Economic Studies at the conservative-leaning "American Enterprise Institute" was quoted in The NY TIMES saying, "I think we can say with a lot of confidence that President Trump's immigration policies and trade policies would result in price spikes." This viewpoint is shared by 16 Noble-Prize winning economists who say that President Trump's policies will ignite an inflation bomb. So, if people are thinking that the reelection of President Trump is going to help our economy, you can expect things will get dramatically worse under his potential presidency. There would be price hikes across the board on goods coming from China and European Union meaning inflation would skyrocket creating chaos on our economy. The simple truth is that Trump's monetary policies are in no way near fiscally sound, and it will saddle our country with staggering debt. In a study by the Non-partisan Peterson Institute for International Economics, the study's co-author Kimberly Cleasing stated in "The Atlantic", "Trump is promising a no-holds bar protectionist spree that will affect every single thing that people buy that is either an import or in competition with import. " Trump voters are completely convinced that this financial assessment is off the mark. Yet, let's take a look at President Trump's financial history. Trump's businesses has a total of 7 bankruptcies since he became an entrepreneur in 1974. Trump raked up $3.4 billion dollars of debt in the early 1990's earning him the nickname of "King of Debt"! This nickname foreshadowed President Trump's handling of our national debt amassing $7.8 trillion to it despite the fact that Trump promised to pay it off in 2016. People should not believe President Trump's claims about how his economic proposals will help our economy due to the fact it is voodoo economics in my opinion.