On November 8, 2016, Donald Trump shocked the world with his surprising upset over favored candidate and former Secretary of State Hillary Clinton. Many people are concerned and confused about exactly what this will mean for their future. While no one can be 100% sure what will happen after January 21, 2017, we are going to make some predictions of what it will mean for your finances. As you must know by now, all predictions are 100% accurate and should be immediately accepted as the complete truth.
Just kidding. But let’s go ahead and take a dive into what this election could mean for you and your wallet, a major – and ultimately, deciding factor this year. The United States stock market dipped the morning after Trump clenched enough electoral college votes to secure a victory, as predicted by many economists. However, it quickly bounced upward to level out and even make some gains by the end of the week.
Why is this? All currency, down from the tiniest dollar bill, to every type of industry, and all the way up to the global market, operates on belief. If nobody has faith or value in the dollar bill, it becomes worthless. Similarly, if faith in the overall economy weakens, it can turn into a downwards spiral towards depression. What most people realized, is that many of Trump’s campaign promises were most likely nothing but, and we had really just elected a glorified Republican to the presidency. One with predictable policies, and reassuring rhetoric capable of convincing traders that his style and business experience brings enough talent and competency to help the economy grow and thrive.
If you haven’t noticed, Republicans in the White House is generally good news for big business, wall street, and the wealthiest Americans. But what about everyone else? How will the average American be impacted? How will the poorest Americans be impacted? How will a Money Mogul be impacted?
We hope that if you are reading this page you don’t consider yourself to be an average American or plain average in general. But average people can’t help it, can they? Somebody has to look out for them. And for someone trying to escape the average lifestyle and make it to the elite end, you have to know what cards are stacked against you. Learn the game, so you can dominate it.
If you have investments in companies related to construction and infrastructure, you’re off to a great start. We expect shares in these companies to show modest appreciation in value after President-elect Trump becomes President Trump. How much? Hard to say right now, but if Trump keeps his campaign promise to rebuild America’s infrastructure, there will be a huge demand in these industries.
What about taxes?
While Trump vowed to cut taxes for middle-class Americans, his currently planned tax reductions seem to primarily benefit the upper class at a disproportionate rate. Trump plans to eliminate both the personal and the head-of-household exemptions, which have long been a way for many citizens to reduce their taxable income. So if you are a single parent or married with three or more children, your taxable income – and effectively your tax bill will increase quite drastically. This is estimated to affect over 8 million people across the United States.
But what about the remaining middle class? Didn’t Trump promise the majority would pay less in taxes? According to the Tax Policy Center, the maximum tax cuts that overall middle-class families may receive hover around 2 percent.
But let’s take a look at who really gets to bring home the bacon when Trump’s tax plan is implemented. Earners in the top 1 percentile will see tax bills 13.5% lower than what they currently pay.
So how else will you be able to benefit financially with a Republican-led Executive, Legislative, and (soon enough) Judicial branch? By staying on top of your game in the marketplace. Some jobs may be coming back to the U.S., but do you really need another job? Will you become a Money Mogul that way? Probably not. The middle-class is not the key to your success. It is merely a mental tool, a trap to keep people comfortable and happy while deterring them from pursuing something greater for themselves.
It doesn’t matter who the president is or what the political climate is like. If you want your wallet to expand in any economy, under any president, keep your creative mind open and find ways to coordinate the execution of work and problem-solving instead of being the one actually doing it. This is the only way to escape the 40 hours/week for 40 years rat race we have been taught by society.