Impacts on Inflation, Employment, and Federal Deficit with Trump or Harris in Office
Inflation and Jobs Under Trump and Harris
Inflation is a pressing concern in the economy. Trump's proposed import tariffs could increase core inflation rates, while his approach to oil production raises questions about its feasibility. Meanwhile, Harris's policies aim for a balanced immigration reform, but they also risk inflating housing costs if supply does not keep pace with demand.
Impact of Tariffs and Immigration Policies
- Trump's Tariffs: Could lead to higher consumer prices.
- Harris's Immigration Strategy: May result in modest reductions in immigration, affecting labor supply and inflation.
Federal Deficit Projections
The federal budget deficit is poised to expand under either candidate. Currently at $1.5 trillion, projections show potential growth to $2.1 trillion by 2034. Trump's tax cuts could exacerbate the deficit significantly, while Harris’s proposals may provide some offset.
- Trump's tax policies could lead to a $5.8 trillion increase over the next decade.
- Harris's proposed tax increases could offset some deficits but may still lead to a $1.2 trillion increase by 2034.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.