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The past several years have been a financial rollercoaster. The higher cost of just about everything has meant less money in the pocket of the average American. From housing, utilities, groceries, and more, costs are through the roof and everyone is feeling the financial squeeze.
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However, USA Facts reported that more Americans feel their financial situation is getting worse.
From 2015 to 2021, more Americans felt their financial situations were improving rather than worsening. However, in 2022 and 2023, Americans felt the opposite. In 2023, 31% of Americans felt worse off than a year before, compared with only 20% of Americans who felt better off.
A possible Harris administration or Trump administration will have various financial implications for Americans. So, whether you’re feeling better or worse about your finances these days, there are several ways that the 2024 presidential election could change how you feel.
Here are five ways that the election could change the way you feel about your financial situation, according to two GOBankingRates reports and more:
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1. Student Loans Could Be Reduced or Eliminated
If Vice President Harris is elected president this November, her administration would likely further student loan forgiveness initiatives that started under the Biden administration. The current administration has implemented billions of dollars of targeted student loan forgiveness for certain groups and created the new SAVE income-driven repayment (IDR) plan to reduce the burden of student loan payments.
On the other hand, a possible Trump administration will likely not embrace or further student loan forgiveness initiatives, which could leave millions of Americans with higher monthly expenses. Critics of the Biden-Harris plan suggest that widespread student loan forgiveness passes the buck (in the form of debt) onto unaffiliated taxpayers more broadly.
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2. Healthcare Costs Could Go Down
The passage of the Affordable Care Act (ACA) in 2010 expanded access to healthcare for millions of Americans who were previously uninsured. The Biden administration has been outspoken about providing expanded access to healthcare for more Americans, which could further reduce monthly costs and out-of-pocket medical expenses. These are initiatives that will likely be furthered by a possible Harris administration, which could provide more financial relief to Americans.
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By contrast, expanding access to universal healthcare isn’t an initiative that the Trump campaign has focused on specifically.
3. Wages Could Grow
Under a possible Trump administration, an expansion of the 2017 Tax Cuts and Jobs Act (TCJA) could spur economic growth and lead to higher wages.
Instead, a possible Harris administration may push for a higher federal minimum wage, which would lead to higher wages across the nation for the average worker.
4. Tax Cuts Could Lead to Economic Growth
The Biden administration’s expansion of both the child tax credit and earned income tax credit has provided significant financial relief for families earning less than $100,000. A possible Harris administration will likely further these initiatives, which could benefit average American families.
On the other hand, a possible Trump administration would likely lead to the expansion of the 2017 Tax Cuts and Jobs Act (TCJA), which would cut corporate tax rates and encourage business expansion. These initiatives could lead to more jobs and short-term wage growth, and the simplified tax system under Trump may also benefit taxpayers writ large.
5. Housing Could Become More Affordable
The Biden administration recently introduced the Biden-Harris Housing plan. The goal is to build 2 million more homes and provide up to $10,000 in mortgage relief to low and middle-income wage earners. The plan also proposes a 5% per year cap on rent increases for current units. An increase in the housing supply combined with rent controls could decrease housing costs across the board.
Meanwhile, a possible Trump administration has expressed supporting interest rate cuts, which could spur demand for housing and decrease the cost of buying a home.
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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This article originally appeared on GOBankingRates.com: 5 Ways the Election Could Make Americans Feel Financially Secure
