So What Will Trump's Policies Mean For The Cost Of Living?
Nov 11, 2024
auto_awesome
Scott Horsley, NPR's chief economics correspondent, dives deep into the links between President-elect Trump's proposed policies and their potential repercussions on the economy. He discusses how mass deportations and steep tariffs could elevate living costs. The conversation also highlights the historical impact of inflation on elections, the broader economic consequences of these policies, and how they might sway voter motivations. It's a fascinating exploration of the intersection between politics and everyday financial realities.
President-elect Trump's proposed tariffs could lead to increased consumer prices and retaliatory actions from global trading partners.
Mass deportations under Trump's policies may worsen labor shortages in crucial industries, further driving up the cost of living.
Deep dives
The Impact of Inflation on Voter Sentiment
The recent election was heavily influenced by rising inflation and the cost of living, which played a crucial role in voters' decisions. Many individuals expressed strong dissatisfaction with increasing expenses related to housing, groceries, and everyday necessities, resulting in a wave of discontent targeted at the incumbent party. Historically, governments facing inflation risks have often seen electoral upheaval across various nations, underlining that economic hardships can significantly undermine public support. In this context, the connection between economic indicators such as inflation and voting behavior highlights the importance of financial stability for political incumbents.
Presidential Power in Economic Affairs
There are limits to what a president can effectively do to bring down prices once inflation rises, despite public expectations for swift solutions. Efforts to stimulate the economy, such as those seen in the American Rescue Plan, can sometimes inadvertently contribute to inflationary pressures. Although wage growth has started to outpace price increases, the cumulative effect of years of rising costs leaves many voters feeling uneasy and frustrated. As economic challenges persist, incumbents must navigate the complex landscape of public perception and economic reality.
Potential Economic Policies Under Trump
Looking ahead, potential policies under President-elect Trump's administration, particularly concerning tariffs, may have significant inflationary implications. The introduction of broad tariffs could result in higher consumer prices while also stimulating retaliatory measures from international trading partners. Furthermore, proposed mass deportations could exacerbate labor shortages in key industries, adding upward pressure on prices, especially in agriculture. The uncertainty surrounding these policies indicates that the business community may need to adapt swiftly to fluctuating economic conditions, while the impacts would greatly depend on how rigidly Trump chooses to implement his campaign promises.
Suffice it to say the economy is quite complicated and making sense of the specific impact of any one policy is quite difficult. But a number of the priorities President-elect Trump has championed, including mass deportations and steep tariffs, could all lead to yet another spike in the cost of living.
This episode: White House correspondent Deepa Shivaram, senior national political correspondent Mara Liasson, and chief economics correspondent Scott Horsley.
The podcast is produced by Jeongyoon Han, Casey Morell and Kelli Wessinger. Our editor is Eric McDaniel. Our executive producer is Muthoni Muturi.
Listen to every episode of the NPR Politics Podcast sponsor-free, unlock access to bonus episodes with more from the NPR Politics team, and support public media when you sign up for The NPR Politics Podcast+ at plus.npr.org/politics.