{UAH} What does a second Trump presidency mean for the average American’s finances?

By Edudi Masaba

Musk the day after election told folks to brace themselves. I agree with him. Trump didn't tell us much policy wise, but here's some specifics:

He's going to end the medicaid expansion for ACA that has been funding the state level healthcare programs people don't think of as being part of ACA. Particularly during COVID we saw a huge increase of citizens in the southern states of signing up for healthcare for the first time- in large part because these subsidies made it affordable for the first time. Everyone who gets their insurance through state programs financed by ACA will have to pay the price without the subsidy, and for many that means they will not be able to afford their insurance. It will mean increased costs for healthcare for millions no matter what.

His tariffs. There's two obvious reasons they will make things more expensive (which American companies have already began announcing as they brace for increased prices themselves). First, tariffs are great at giving consumers within a country that makes it's own goods incentive to buy national rather than foreign. We used to call them protective tariffs as a result because they protected American producers. The problem with America is we don't make anything, foreign companies have a complete monopoly on our goods so taxing them isn't going to drive Americans to an American alternative. These countries also aren't going to pay these new costs anymore than Mexico paid for a 50 foot wall at the border. Second, even if the goal is to bring American manufacturing back to America this is no where near large enough a tax and there's no infrastructure investment. The 10–20% tariff is nowhere near high enough to incentivize this as a result. Nike for example in Vietnam pays employees $54 a month to make shoes with no benefits. Will an extra 10–20% tariff make Nike decide to close up manufacturing in Vietnam, build new manufacturing facilities in America, and pay American workers a good wage with benefits? Even if they did, how much more e would the shoes cost? Our trade deficit is not going to be solved so easily no matter how nice a fast solution sounds.

My answers have nothing to do with ideology by the way. This is what Trump said he wants America to do and that's just the reality of what will happen. If you have the money, remember to hedge with some kind of anti-inflation assets. As musk said, brace yourselves.

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