5 Reasons a Trump Second Term Could Be a Financial Headache for Millennials
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Millennials represent a key voting bloc in the 2024 presidential election — and one with a lot at stake. The oldest millennials are heading into their mid-40s, while the youngest are approaching their 30s. Regardless of whether President Joe Biden or ex-President Donald Trump wins, their policies will have a major impact on millennials as they enter an important life stage in terms of earning power, taxes, home ownership and family expenses.
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Although younger voters tend to favor Democrats, many millennials are disenchanted with both Biden and Trump. The age gap between the candidates and millennials has something to do with that, but so does a disconnect between what the candidates propose and what millennials value culturally, politically and financially.
Should Trump win a second term in November, some of his policies could lead to a number of financial headaches for millennials. Here’s a look at some of them.
An End to Student Loan Relief
The Biden administration has already canceled more than $150 billion in student debt for 4.3 million borrowers, Business Insider reported — and that’s without Biden’s ambitious loan forgiveness plan making it into law. The administration intends to pursue other student loan forgiveness options in the future if Biden wins another term. But if Trump should win, those efforts will likely come to a screeching halt, meaning millennials with heavy student debt will have few, if any, options for relief.
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Support for Tariffs Could Keep Inflation High…
One cornerstone of the Trump campaign is his promise to impose tariffs on trillions of dollars’ worth of imports. Such a move is designed to strengthen U.S.-based industries and jobs by discouraging foreign imports. But it could also lead to higher prices on products that are much cheaper to source overseas. Continued high prices would be especially damaging to millennials, who now have mortgages to pay and families to support.
….And So Could Other Trump Policies
As The Hill reported, former International Monetary Fund chief economist Maurice Obstfeld argued that several policy proposals from Trump’s advisors would “revive 1970s-style inflation.” One proposal would give the president more influence over Federal Reserve interest-rate decisions and rulemaking, while the other would weaken the U.S. dollar to reduce the U.S. trade deficit. Again, continued high inflation comes at a bad time for millennials with so many other bills to pay.
Downsized Government
Trump has made no secret of his dislike of the federal government and has promised to abolish whole agencies and fire tens of thousands of government workers. The most immediate impact is that these former government workers — including millennials — would suddenly find themselves unemployed. An indirect result would be more competition for private-sector jobs.
No More Obamacare
Trump has said he hopes to “repeal and replace” the Affordable Care Act, a k a Obamacare, though he has not publicly unveiled an alternate affordable healthcare plan, Business Insider reported. Millions of millennials currently enrolled in Obamacare would have to find alternative healthcare plans, and many of those will cost more money.
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