Understanding the economic impact of Trump’s policies

How will President-elect Donald Trump’s policies affect the U.S. economy, from the price of groceries to the cost of housing? Some say historically it hasn’t mattered much for the stock market which party wins the presidency.

Dennis Hoffman, an ASU Economist, joined “Arizona Horizon,” to discuss the economy after the election.

Hoffman emphasized that while many are suffering due to the economy, the U.S. economy is strong at this point.

“…but it’s gonna have to take huge policy missteps to mess this thing up,” Hoffman said.

Some of President-elect Donald Trump’s policies include extensive tax cuts, tips and social security benefits, corporate tax cuts, and child tax credits. Hoffman believes these are measures that are put in place for weak economies.

“They are gonna increase demand, they are gonna put more money back in people’s pockets…” Hoffman said, “…that’s inflation.”

Hoffman highlighted that the economy is not what it used to be post-coronavirus pandemic. President-elect Donald Trump will be inheriting an economy that is completely different than the one he inherited from Obama.

Hoffman and “Arizona Horizon,” host and managing editor, Ted Simons, discussed how Trump’s deportation initiative could impact the U.S. economy.

“…deport them all. Well, folks are going to discover that many of the “all,” are working, in full-time jobs…” Hoffman said. “…if they do, it’s a huge disruptor. It’s huge in Arizona, Arizona’s construction industry…it’s huge across food production.”

Will Arizona get the best of it or the worst of it?

“We’re at a point where rates are about to come down, inflation’s really cooling off, mortgage rates down,” Hoffman said. “…it’s just about ready to blossom, and now we are going to spend all this angst and energy on round-ups, raids…folks have a lot at stake.”