December 3, 2024 • 9 mins
Jordan Goodman, "America's Money Answers Man" joined Todd Walker to discuss the economic impact of the policies being touted by the incoming Trump administration.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Well, welcome back, Jordan Goodman in America's Money Answers Man,
and we have several issues to talk about, and when
we think about the incoming Trump administration, one of the
things that has been talked about is mass deportation of
illegal immigrants. Of course, the first ones to go about,
what they've been saying, are those that are already criminals,
(00:22):
are already in prison, or are of the criminal element
or a national security problem. And once they do that,
maybe they'll move on to other illegal immigrants. But in
the long run could cause some labor shortages, and that
could be a problem for some industries and maybe causes
some increases and prices. Jordan, But I guess there's always
(00:46):
a negative with a positive, right, That's right.
Speaker 2 (00:48):
I mean the positive getting these criminals out of the
country is a good thing. All these illegals that have
come in and put an enormous burden on states and
cities one hundreds of thousand people in New York and Chicago,
Denver and Los Angeles and so on, So getting rid
of that burden would be a good thing. But something
like forty percent of the people working picking fruits and
(01:09):
vegetables and so on are illegal and if they're growing
back to Guatemala and Honduras and all those places, there's
gonna be no ready left to pick vegetables, So I
mean food prices could go up. The same thing with
meat packing plants. These are jobs Americans are not willing
to do, and then they're low paid. The only solution
is automation, and that's coming and may be able to
(01:31):
have robots picking as grapes and things, but in a
short term it could definitely cause food inflation by having
If in fact, they do deport eleven million or so
illegal migrants, yeah.
Speaker 1 (01:44):
Well maybe we could replace some of those people with
those that are eliminated by the DOGE the Department of
Government Efficiency. They're going to send quite a few people
packing from their cushy remote government jobs and they they.
Speaker 2 (02:01):
The meatpacking plan. Yes they might be looking. Who knows,
but if it's going to be a major change, We're
not sure exactly what's going to happen. Sure, but this
Department of Government Efficiency is going to kick a fresh
look at everything the government does at the federal level
and say that we really need to do all these
strange studies and do we have to have all these
subsidies and these cash payments and then look at the
(02:25):
whole thing, which really hasn't been done since the early
eighties and Reagan and he did something similar like that. Sure,
so it's going to be a major change coming. We
don't know where it's going to go. There will be
tremendous resistance, but I think it's time to really take
a fresh look at government see what's really necessary.
Speaker 1 (02:40):
Jordan Goodman is with us. You can reach him via
email Jordan at Money Answers dot com. Also, of course,
Trump talking about tariffs, and I think usually what ends
up happening is the tariffs are sort of a tit
for tat and used as sort of a carrot and
a stick to get things that he wants done. But
(03:03):
certainly tariffs can cause some inconvenience or some price increases
or some other problems, so you try to use them judiciously.
I guess you would, say, Jordan. But it remains to
be seen how this could play out.
Speaker 2 (03:18):
Well, Trump's not talking about judicials. He's talking about ten
percent across the board on everything imported in from America,
and in certain cases he's talking about sixty percent tariffs
on China, for example, so that's that's not judicious. That's
just like everything coming in. We import over five hundred
billion dollars worth of goods from China every year, so
it would be a major thing that really hurt the
(03:40):
Chinese economy very badly as well, because they were their
biggest market. So the good side of this, if it works,
would be to protect American industry that would otherwise be devastated.
I'll give you one example, electric cars. If we let
all the electric cars being built in China, and that
would devastate American electric car building because there's like twenty
(04:02):
thousand dollars or like fifty that's two thousand. So there
are times when I think you do want to protect industry.
What you don't want to do is to get into
a tariff war, and that's typically what happens. If we
put ten percent tariffs on Europe, they put ten percent
tariffs on Us, and it just gets worse and worse,
and world trade goes down, and that's negative for the
world economy. So it has to be done very subtly.
(04:25):
The best of all possible solutions would be Trump threatens
ten percent tariffs. If you don't do these things, open
up your markets in various ways. And if Europe in
trying to relent and open their markets, then we don't
do the tariffs and we have more trades and more
fear trade. That would be the ideal solution, and maybe
(04:45):
it'll work because he's shown he can do tariffs. He's
done him last time, and he could do them again.
Speaker 1 (04:50):
Yeah. Of course, another part of the Trump platform the
tax cuts that were enacted in twenty seventeen. The full
is that they will come in and the new Congress
will try to extend those.
Speaker 2 (05:04):
Right well, now that the Republican control the House and Senate,
very likely they will be certainly extended, may be made permanent,
and possibly extended further. For example, the corporate tax rate
went from at that time twenty eight down to twenty one.
Trump's talking about bring it down to fifteen, which would
be a major incentive for American companies to move here
(05:25):
and create production and jobs here, and so that would
be a good thing. The DWN side of all this
is that it means less revenue to the government and
maybe no longer it will make it up to the shore.
But it's really hur it's government revenues. And you might
have noticed we have a bit of a deficit here,
so I think what beeficits go up as the government
collects left revenue. Not only from that, but he's talking
(05:48):
about expanding it and not having taxes on tips over
time and social security. Again, these are wonderful for American
citizens who'd get more money in their pockets, but it
makes the deficits that much worse.
Speaker 1 (06:00):
Also, we're talking about a lot of deregulation under a
Trump administration, and that would be beneficial in many ways Jordan,
but maybe most beneficial in the area of energy production.
Speaker 2 (06:12):
Yeah, and clearly there's going to be a big deregulatory
All the regulations have been put on the environment, on
stopping energy production, in the health and food area, labor regulations,
just a whole bunch of regulations have been put in
the last four years. It's all going to be repealed.
We're going to go back to where we were four
years ago. And I think, and mostly that's good. These
(06:34):
regulations burden business, slow things down. It'll open up a
lot of growth possibilities. But people are going to object
to everything. I mean, people in the environment are going
to worry that we're making the environment worse and heating
the planet and so on. So everything Trump's about to
do is going to have very strong of pushback, let's
(06:55):
put it that way.
Speaker 1 (06:55):
Well, hopefully we can push through the push back that
surely will come. As you say, Also, if Robert F.
Kennedy Jr. Is that Health and Human Services, or even
if he isn't, I think the idea is certainly that
there are going to be some changes there, and the
regulations of food and drugs and how they then are
(07:16):
sold could change drastically here.
Speaker 2 (07:19):
Yes, I mean RFK Jr. Is an anti vaxxer and
doesn't believe in traditional drug therapy in many cases. And
it's not clear exactly I was going to do it,
but he may change how drugs are approved or sold.
And the same with food. He's against package food, so
the whole middle of the supermarket. He might say he's
(07:41):
going to be against package cereals and peanut but and
everything else, and he may change food regulation as well.
So that could be a big change in how we
get our drugs and food.
Speaker 1 (07:51):
Yeah, we'll see how any and all of that could
possibly play out. And one other thing, the coming reform
or change in the way the Education Department runs that
there's talk of possibly eliminating it and sending all that
money back to the states to do education themselves and
not be I guess bossed around by the federal Education Department.
(08:14):
That could have some financial ramifications as well.
Speaker 2 (08:19):
Well, very much so. I mean, the Education Department pretty
much does out a lot of money. Those out money
to colleges and K through twelve. Typically, curriculum is set
at the more local level. Student loan business is run
by the Education Department. Centrally, Everything that Biden was talking
about as far as for giving student loans is not
going to happen. So the whole education I even heard
(08:42):
Trump talk about creating an AI academy that could educate
people much faster and cheaper without having to go through
a four year college. So the whole education establishment is
going to be upended and they're not going to be
happy either. They will fight back like crazy on every
part of this. The U unions will not want to
change anything in K two twelve, and the colleges will
(09:04):
fight back. There's gonna be a lot of fighting and
fighting back all over the place in the next four years.
Speaker 1 (09:09):
Well, the good thing for education writ large is they
have such a long track record of great results.
Speaker 2 (09:15):
Oh wait, no, not exactly. No they do. I think
we're like forty fifth of the world now in outcomes.
I mean you think of how education is done in
Singapore or Japan or even China. You know, they students
are much better prepared to the world than ours aren't.
In general.
Speaker 1 (09:31):
Yeah, our students aren't very bright or prepared, but they
feel good about themselves.
Speaker 2 (09:36):
So there's that. Well, at least they have their safe space.
Speaker 1 (09:40):
Yes, safe spaces. Well, money Answers dot com is a
safe space to go get smarter. Thanks to Jordan Goodman. Jordan,
thanks for checking in with us.
Speaker 2 (09:49):
All right, very good take it, jub
Well, welcome back, Jordan Goodman in America's Money Answers Man,
and we have several issues to talk about, and when
we think about the incoming Trump administration, one of the
things that has been talked about is mass deportation of
illegal immigrants. Of course, the first ones to go about,
what they've been saying, are those that are already criminals,
(00:22):
are already in prison, or are of the criminal element
or a national security problem. And once they do that,
maybe they'll move on to other illegal immigrants. But in
the long run could cause some labor shortages, and that
could be a problem for some industries and maybe causes
some increases and prices. Jordan, But I guess there's always
(00:46):
a negative with a positive, right, That's right.
Speaker 2 (00:48):
I mean the positive getting these criminals out of the
country is a good thing. All these illegals that have
come in and put an enormous burden on states and
cities one hundreds of thousand people in New York and Chicago,
Denver and Los Angeles and so on, So getting rid
of that burden would be a good thing. But something
like forty percent of the people working picking fruits and
(01:09):
vegetables and so on are illegal and if they're growing
back to Guatemala and Honduras and all those places, there's
gonna be no ready left to pick vegetables, So I
mean food prices could go up. The same thing with
meat packing plants. These are jobs Americans are not willing
to do, and then they're low paid. The only solution
is automation, and that's coming and may be able to
(01:31):
have robots picking as grapes and things, but in a
short term it could definitely cause food inflation by having
If in fact, they do deport eleven million or so
illegal migrants, yeah.
Speaker 1 (01:44):
Well maybe we could replace some of those people with
those that are eliminated by the DOGE the Department of
Government Efficiency. They're going to send quite a few people
packing from their cushy remote government jobs and they they.
Speaker 2 (02:01):
The meatpacking plan. Yes they might be looking. Who knows,
but if it's going to be a major change, We're
not sure exactly what's going to happen. Sure, but this
Department of Government Efficiency is going to kick a fresh
look at everything the government does at the federal level
and say that we really need to do all these
strange studies and do we have to have all these
subsidies and these cash payments and then look at the
(02:25):
whole thing, which really hasn't been done since the early
eighties and Reagan and he did something similar like that. Sure,
so it's going to be a major change coming. We
don't know where it's going to go. There will be
tremendous resistance, but I think it's time to really take
a fresh look at government see what's really necessary.
Speaker 1 (02:40):
Jordan Goodman is with us. You can reach him via
email Jordan at Money Answers dot com. Also, of course,
Trump talking about tariffs, and I think usually what ends
up happening is the tariffs are sort of a tit
for tat and used as sort of a carrot and
a stick to get things that he wants done. But
(03:03):
certainly tariffs can cause some inconvenience or some price increases
or some other problems, so you try to use them judiciously.
I guess you would, say, Jordan. But it remains to
be seen how this could play out.
Speaker 2 (03:18):
Well, Trump's not talking about judicials. He's talking about ten
percent across the board on everything imported in from America,
and in certain cases he's talking about sixty percent tariffs
on China, for example, so that's that's not judicious. That's
just like everything coming in. We import over five hundred
billion dollars worth of goods from China every year, so
it would be a major thing that really hurt the
(03:40):
Chinese economy very badly as well, because they were their
biggest market. So the good side of this, if it works,
would be to protect American industry that would otherwise be devastated.
I'll give you one example, electric cars. If we let
all the electric cars being built in China, and that
would devastate American electric car building because there's like twenty
(04:02):
thousand dollars or like fifty that's two thousand. So there
are times when I think you do want to protect industry.
What you don't want to do is to get into
a tariff war, and that's typically what happens. If we
put ten percent tariffs on Europe, they put ten percent
tariffs on Us, and it just gets worse and worse,
and world trade goes down, and that's negative for the
world economy. So it has to be done very subtly.
(04:25):
The best of all possible solutions would be Trump threatens
ten percent tariffs. If you don't do these things, open
up your markets in various ways. And if Europe in
trying to relent and open their markets, then we don't
do the tariffs and we have more trades and more
fear trade. That would be the ideal solution, and maybe
(04:45):
it'll work because he's shown he can do tariffs. He's
done him last time, and he could do them again.
Speaker 1 (04:50):
Yeah. Of course, another part of the Trump platform the
tax cuts that were enacted in twenty seventeen. The full
is that they will come in and the new Congress
will try to extend those.
Speaker 2 (05:04):
Right well, now that the Republican control the House and Senate,
very likely they will be certainly extended, may be made permanent,
and possibly extended further. For example, the corporate tax rate
went from at that time twenty eight down to twenty one.
Trump's talking about bring it down to fifteen, which would
be a major incentive for American companies to move here
(05:25):
and create production and jobs here, and so that would
be a good thing. The DWN side of all this
is that it means less revenue to the government and
maybe no longer it will make it up to the shore.
But it's really hur it's government revenues. And you might
have noticed we have a bit of a deficit here,
so I think what beeficits go up as the government
collects left revenue. Not only from that, but he's talking
(05:48):
about expanding it and not having taxes on tips over
time and social security. Again, these are wonderful for American
citizens who'd get more money in their pockets, but it
makes the deficits that much worse.
Speaker 1 (06:00):
Also, we're talking about a lot of deregulation under a
Trump administration, and that would be beneficial in many ways Jordan,
but maybe most beneficial in the area of energy production.
Speaker 2 (06:12):
Yeah, and clearly there's going to be a big deregulatory
All the regulations have been put on the environment, on
stopping energy production, in the health and food area, labor regulations,
just a whole bunch of regulations have been put in
the last four years. It's all going to be repealed.
We're going to go back to where we were four
years ago. And I think, and mostly that's good. These
(06:34):
regulations burden business, slow things down. It'll open up a
lot of growth possibilities. But people are going to object
to everything. I mean, people in the environment are going
to worry that we're making the environment worse and heating
the planet and so on. So everything Trump's about to
do is going to have very strong of pushback, let's
(06:55):
put it that way.
Speaker 1 (06:55):
Well, hopefully we can push through the push back that
surely will come. As you say, Also, if Robert F.
Kennedy Jr. Is that Health and Human Services, or even
if he isn't, I think the idea is certainly that
there are going to be some changes there, and the
regulations of food and drugs and how they then are
(07:16):
sold could change drastically here.
Speaker 2 (07:19):
Yes, I mean RFK Jr. Is an anti vaxxer and
doesn't believe in traditional drug therapy in many cases. And
it's not clear exactly I was going to do it,
but he may change how drugs are approved or sold.
And the same with food. He's against package food, so
the whole middle of the supermarket. He might say he's
(07:41):
going to be against package cereals and peanut but and
everything else, and he may change food regulation as well.
So that could be a big change in how we
get our drugs and food.
Speaker 1 (07:51):
Yeah, we'll see how any and all of that could
possibly play out. And one other thing, the coming reform
or change in the way the Education Department runs that
there's talk of possibly eliminating it and sending all that
money back to the states to do education themselves and
not be I guess bossed around by the federal Education Department.
(08:14):
That could have some financial ramifications as well.
Speaker 2 (08:19):
Well, very much so. I mean, the Education Department pretty
much does out a lot of money. Those out money
to colleges and K through twelve. Typically, curriculum is set
at the more local level. Student loan business is run
by the Education Department. Centrally, Everything that Biden was talking
about as far as for giving student loans is not
going to happen. So the whole education I even heard
(08:42):
Trump talk about creating an AI academy that could educate
people much faster and cheaper without having to go through
a four year college. So the whole education establishment is
going to be upended and they're not going to be
happy either. They will fight back like crazy on every
part of this. The U unions will not want to
change anything in K two twelve, and the colleges will
(09:04):
fight back. There's gonna be a lot of fighting and
fighting back all over the place in the next four years.
Speaker 1 (09:09):
Well, the good thing for education writ large is they
have such a long track record of great results.
Speaker 2 (09:15):
Oh wait, no, not exactly. No they do. I think
we're like forty fifth of the world now in outcomes.
I mean you think of how education is done in
Singapore or Japan or even China. You know, they students
are much better prepared to the world than ours aren't.
In general.
Speaker 1 (09:31):
Yeah, our students aren't very bright or prepared, but they
feel good about themselves.
Speaker 2 (09:36):
So there's that. Well, at least they have their safe space.
Speaker 1 (09:40):
Yes, safe spaces. Well, money Answers dot com is a
safe space to go get smarter. Thanks to Jordan Goodman. Jordan,
thanks for checking in with us.
Speaker 2 (09:49):
All right, very good take it, jub
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