cbsnews.com
Trump's Economic Policies: Impacts and Analysis
Analysis of the potential economic impacts of President-elect Donald Trump's policies on taxes, inflation, GDP growth, housing, and investments.
English
United States
Us PoliticsInflationInvestmentEconomic GrowthEconomic PolicyTaxation
Raymond JamesFederal ReserveTax FoundationPenn Wharton Budget ModelPeterson Institute For International Economics
Donald TrumpEd MillsJacob ChannelLisa SturtevantSolita Marcelli
- How might Trump's policies affect housing affordability?
- Trump's policies are unlikely to make housing more affordable. Inflation caused by his policies may lead to higher mortgage rates, and deportations could shrink the construction workforce and increase building costs, further reducing housing supply.
- What is the potential impact of Trump's economic policies on GDP growth?
- Initially, corporate tax cuts might slightly boost economic growth. However, the negative effects of deportations and higher tariffs could eventually decrease GDP growth by 0.6 percentage points by 2028, according to Oxford Economics.
- What is the potential impact of Trump's policies on 401(k)s and other investments?
- Trump's proposed corporate tax cuts and deregulation could potentially boost company profits and lift the stock market, positively impacting 401(k)s. However, the success of this hinges on the implementation of his policies, which could face significant hurdles.
- How might Trump's policies impact inflation, and what are the potential consequences?
- Economists warn that Trump's policies, particularly tariffs and mass deportations, could significantly increase inflation. Tariffs act as sales taxes on consumers, and deportations could cause labor shortages and wage increases. A 1% increase in inflation is possible.
- What are the key components of Trump's tax plan and how would they affect different income groups?
- Trump's tax plan primarily focuses on extending the 2017 Tax Cuts and Jobs Act provisions, lowering the corporate tax rate to 15%, and potentially eliminating personal income taxes on certain earnings. High-income households would benefit most, while a middle-class family might see around a $1,740 tax break.