Many of us woke up this morning to learn the results of the 2024 presidential election. In just a few weeks, Donald J. Trump will return to the White House. Whether you were hoping for Donald J. Trump to win or rooting for Kamala Harris, nearly half of the country is disappointed this morning, while the other half is optimistic. All of us are wondering, though, how the election results will impact our financial lives. We can’t predict the future, but examining the past can sometimes help us make educated guesses about what may lie ahead and how best to prepare.
How Have Past Elections Impacted the Economy?
Understanding how past administrations have influenced the economy can help us anticipate what may lie ahead. Here’s a look back at the economic trends during recent presidencies, focusing on issues that affect everyday Americans, like housing, food, and transportation costs.
A Snapshot of Economic Trends Across Administrations
- Biden Administration (2021-2024): President Biden’s administration navigated economic recovery from the COVID-19 pandemic, facing high inflation, housing costs, and supply chain disruptions. While stimulus measures provided temporary relief, high costs of essentials like food and gas weighed on many Americans.
- Trump Administration (2017-2021): Trump’s initial years saw tax cuts and economic growth, with policies aimed at deregulation and job creation. However, COVID-19 severely impacted the economy, and tariff policies affected consumer prices.
- Obama Administration (2009-2017): Inheriting the aftermath of the 2008 financial crisis, Obama focused on recovery efforts, implementing financial regulations and stimulus packages that brought gradual economic stability. Housing prices began rising, but wage growth remained a challenge.
- George W. Bush Administration (2001-2009): The Bush years included challenges like the dot-com bubble burst, 9/11, and the 2008 financial crisis. Rising energy prices affected families, and military spending added pressure to the federal budget.
- Clinton Administration (1993-2001): Clinton’s administration achieved a balanced budget, creating a period of economic expansion with low unemployment and rising wages. This period also saw significant technological advancements, though income inequality persisted.
When Might I Expect to Notice Changes That Will Impact My Finances?
Donald J. Trump will be inaugurated in January 2025. While the President has significant influence, they cannot pass laws directly; that responsibility lies with Congress. Even when new laws pass, it can take months or years for them to impact everyday lives as government agencies determine how to implement them. For instance, if new policies affecting tax rates or healthcare are enacted, it may take some time before you see tangible changes in your finances. Expect the process to be gradual.
What Types of Changes Should I Expect?
While we can’t predict specific outcomes, understanding Trump’s priorities offers a glimpse into potential shifts. Trump has discussed initiatives related to tax cuts, deregulation, and energy production, though translating these goals into action will require legislative and judicial cooperation.
Here are resources exploring Trump’s current priorities:
- Trump’s 2024 Campaign Website
- The Heritage Foundation
- The Brookings Institution
- Congressional Research Service
These sources provide insights into Trump’s objectives, but remember that policy changes often require negotiation and compromise across government branches.
What Should I Do to Prepare for These Changes?
Taking steps now can help you feel more secure, regardless of the upcoming changes.
- If You’re Concerned: If you want to protect your finances, consider conservative moves such as reallocating investments into bonds or maintaining a robust emergency fund. Think of this as a way to safeguard your resources until there’s more clarity.
- If You’re Optimistic: For those feeling confident about potential economic growth, a more aggressive investment approach might make sense. Stocks, real estate, or high-yield assets may offer growth opportunities, though there’s always risk involved.
If you’re uncertain about your approach, a financial advisor can provide personalized guidance. Locate a fiduciary advisor through NAPFA, who is legally obligated to act in your best interest.
Key Takeaways:
- Assess: Review your current finances and consider conservative or aggressive adjustments based on your comfort level.
- Consult: Reach out to a financial advisor for tailored advice.
- Prepare: Building an emergency fund and evaluating your investments can provide peace of mind.
If I’m Anxious, How Can I Cope?
Election cycles can be stressful, and post-election anxiety is real. Here are strategies and resources to help you manage:
- The American Psychological Association has resources on managing election stress
- BetterHelp has resources and professionals to help you cope with stress and anxiety
- mindful.org has resources on mindfulness techniques for stress relief
- The National Alliance on Mental Illness has resources on coping with stress and anxiety
- HelpGuide has information on coping with stress and anxiety
Connecting with others, practicing self-care, and limiting news exposure can make a difference. If anxiety feels overwhelming, seeking support from a mental health professional can provide additional help. Use Psychology Today’s Therapist Finder to locate someone near you.
Conclusion
Whether you’re anxious or optimistic, times of change can create emotional and financial stress. Remember to process your emotions and make thoughtful financial choices as you move forward. Remember, too, that professionals can help guide you toward the right decisions and offer support if you’re coping with post-election stress or anxiety. At Penny Forward, we’re here to help with the resources and guidance you need.
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