How a Second Trump Presidency Could Financially Benefit the Working Class
The Center for American Progress states that “the majority of America’s workers are part of the working class.” While definitions vary, the term typically refers to individuals earning hourly wages, often through manual labor, without a four-year college degree. Historically, this demographic leaned Democratic, especially during the era of Franklin D. Roosevelt and the New Deal. However, a significant realignment occurred when working-class voters played a crucial role in Donald Trump’s 2016 victory and his near-win in 2020, according to Politico.
Here are three ways a second Trump term could potentially benefit his critical working-class base:
1. Aggressive Trade and Immigration Policies: Boosting Domestic Production and Wages
One of the hallmarks of Trump’s presidency was his aggressive trade policies, including tariffs aimed at boosting domestic production. Critics from organizations like Brookings and the Carnegie Endowment for International Peace argue these policies cost jobs and increased prices for consumers. However, proponents believe these measures could bring manufacturing jobs back to the U.S.
James P. Pinkerton, a former domestic policy advisor in the Reagan and George H.W. Bush administrations, noted that the trend towards inshoring — bringing production back to the U.S. — could benefit the working class. “Countries are realizing that free trade has adverse effects on not only workers but also on countries’ knowledge base. That is, if production is offshore, so is the know-how — and that spells slowed productivity increases,” Pinkerton explained.
This dynamic ties directly into Trump’s stance on immigration. By managing immigration to create a tighter labor market, wages for domestic workers could potentially rise. “Loose labor markets mean lower wages. A tight labor market means higher wages,” Pinkerton added.
2. Job Creation: A Focus on Sectors Benefiting the Working Class
Working-class Americans stand to gain significantly if Trump’s trade policies successfully stimulate private-sector job creation. President Biden’s administration touts the lowest unemployment rate in 50 years. However, Trump argues that Biden’s employment numbers aren’t reflective of actual economic conditions for the working class. According to Benzinga, a large portion of new jobs under Biden are taxpayer-subsidized government positions. Moreover, 83% of job growth during Biden’s term has been in government, healthcare, and service sectors, leaving many skilled laborers outside the employment boom.
In contrast, Trump’s policies may focus more on sectors like manufacturing and construction, which are more likely to benefit blue-collar workers. By stimulating job creation in these industries, a second Trump administration could provide more employment opportunities for the working class.
3. Deregulation Measures: Increasing Affordable Housing
Affordable housing is a critical issue for many working-class Americans. In 2019, the National Low Income Housing Coalition reported that Trump signed an executive order to eliminate barriers to affordable housing development. If reelected, Trump plans to further deregulate the housing market by removing lending regulations from 2008, which he believes hinder access to home loans and new construction.
Analysts suggest that this approach could help address the housing crisis by increasing the supply of affordable homes. Pinkerton pointed out, “Areas with open policies toward new construction, such as Texas, have more supply and lower prices. While states that restrict construction, such as California, have less supply and higher prices.”
By removing regulatory barriers, a second Trump administration could potentially make it easier for working-class families to purchase homes. This would not only provide stable housing but also contribute to wealth building through homeownership.
Conclusion
A second Trump presidency could offer several potential financial benefits for the working class. Aggressive trade and immigration policies might boost domestic production and wages, job creation efforts could focus on sectors that employ blue-collar workers, and deregulation measures might increase the availability of affordable housing. These strategies align with the economic concerns of many working-class Americans, who prioritize issues like employment, inflation, and housing. As the political landscape continues to evolve, the impact of these policies will remain a critical topic of discussion for millions of working-class voters.
