Trump is Making Us Poorer

Roughly five years ago, the international economy began a period of turmoil as a result of the COVID pandemic. This led to supply chains being disrupted and increased prices for a number of goods, if you could find them at all. Then the government's reaction to that economic upheaval resulted in increased inflation. Whether the government intervention caused or simply amplified existing inflation is something often seen through a political lens, but the outcome was the same regardless: higher prices. Things were just getting under control when cult leader, convicted felon, and failed President Donald Trump was elected. His on-again, off-again, tariff policies and other trade-related activities have caused tremendous market upheaval. Once again, prices are rising. On top of that, the "One Big Beautiful Bill" being considered in Congress is likely to increase other costs for most families. I am going to do something a little different today and discuss the impact of the Trump presidency on our financial bottom line. Simply put, Trump and the Republicans are doing significant financial damage to my family and, in all probability, yours as well.

Where the Trump economy has had the most damaging impact on us has been grocery prices. Our grocery bill has almost doubled since Trump was elected. Prices seem to have increased across the board. We've seen the price of bread, juice, and fruits and vegetables all go up. As some extremely longtime DCUM readers might know, I have a soft spot for cherries. I enjoy eating almost any kind of cherry at almost any time. Dried, fresh, Bing, or Rainier, it doesn't matter. I like them. We might normally pay around $7 for a bag of fresh cherries. During the season, like this time of year, the cost might drop to half of that. But this week, bags of cherries cost us approximately $15 each. That was such a stunning difference that I took some time to look into the reason for the price increase. One thing I found is that cherry producers are having a difficult time finding workers thanks to Trump's mass deportation efforts. A recent article discussed the plight of Washington State cherry growers. They have traditionally relied on migrant labor, and many of those workers have disappeared. As a result, they can't find people to pick cherries, and acres of unpicked fruit are going to waste. As a result, at a time when shelves should be overflowing with fresh cherries, there are fewer available. The law of supply and demand means that the price goes up when the supply goes down. Hence, $15 cherries. Obviously, cherries are not the most important thing in the world and, if pressed, I could do without them. But, as an example of Trump's impact on prices, they are a notable example.

Trump's tariffs have not had a very large immediate impact, but tariff-related price increases are coming. Several automobile manufacturers have announced price increases. For instance, Toyota recently said that it would raise prices on its cars sold in the United States. Volvo said that it would increase its car prices by nearly 6%. BMW and Ford also announced price hikes. Luckily, our family doesn't need to buy a car at this time. But the costs of other goods are going up as well.

Further threats to our financial situation are coming from the "One Big Beautiful Bill" being considered by Congress. One of the most significant impacts is caused by the proposed tax changes. While the very rich are going to make out like bandits, most of us will pay more. The Washington Post has an online calculator that shows the impact of the proposed tax changes on your family. In my family’s case, we will face a tax increase in the thousands of dollars. A family that might not be unusual on DCUM that consists of married parents and two kids with an income of $450,000 would pay an additional $20,000 in taxes. Another family, also two parents and two kids, but making $150,000 would face a tax increase of about $7,000. Married with 2 kids but making $80,000 would have an increase of over $2,000. Trump and the Republicans are definitely reserving their tax cuts for the very rich.

Another sizable increased cost for my family will be health insurance. Unlike those who work for companies, I have no employer-provided health insurance. Instead, we rely on the Obamacare health exchange that was established by the Affordable Care Act. The American Rescue Plan, passed during the pandemic, and the Inflation Reduction Act, enhanced and extended health insurance premium credits for plans purchased on the exchanges until the end of this year. Those credits help make health insurance affordable. The current version of the One Big Beautiful Bill will not extend those credits. Therefore, next year I can expect to see my family's health insurance premiums more than double. Nearly everyone relying on the exchanges will also see price increases. Thankfully, we will be able to afford the increased premiums, though it will require cutting in other areas. But, many families will be unable to afford insurance and will simply go without. This is shortsighted as healthcare costs are often higher for uninsured individuals than for those with insurance. If the Republicans truly wanted to lower costs, they would keep or expand the credits. But their main interest is cutting the cost of their bill as much as possible in order to offset the tax cuts they are determined to provide the super wealthy.

Republicans are supposed to be good for the economy. That may be true if you are Elon Musk or Jeff Bezos. But, for our family, Republicans could hardly be worse in terms of the financial impact they are having on our financial situation. Price increases on day-to-day goods, tax increases, and even higher health insurance premiums are hitting us from all sides. Moreover, things appear likely to get worse before they get better. Trump appears determined to make the rich richer and the middle class poor. As for the poor, I guess there are cherry-picking opportunities for them. That seems to be the Trump economic plan in a nutshell.