The economy and the seemingly ever-rising cost of living are top priorities for voters this election year. Fear among some voters could hamper the efforts of Joe Biden and Donald Trump, each striving to secure another term in the White House. Baby boomers, in particular, are expressing concerns over economic policies, rising prices, and their futures.
An AARP survey found that about one-quarter of adults in the U.S. aged 50 and older who are not yet retired said they expect never to retire. Additionally, about 70% expressed concerns about prices rising faster than their incomes. This demographic’s concerns are crucial in an election year, as Trump and Biden have had very different policies on issues directly impacting boomers. While Biden has highlighted his healthcare policies to save consumers money, Trump has focused on the impact of corporate taxes on everyday Americans.
Let’s explore three ways a second Trump term might be beneficial for Boomers:
Corporate Taxes
The debate over corporate taxes is one that boomers are watching closely, especially as the Trump tax cut passed in 2017 will largely expire in 2025. Corporate tax cuts were made permanent, but individual taxes will spike sharply if Congress doesn’t act. According to Brandon Gregg, an advisor and market president with BBK Wealth Management, lower taxes would keep more money in consumers’ pockets, which would be a significant benefit for boomers, who hold a sizable percentage of consumer assets.
“There’s a lot of discussion about whether this would be a good or bad thing considering the current deficit we are in, but there is no doubt that lower taxes will keep more money in consumers’ pockets,” Gregg said. “Boomers hold a sizable percentage of consumer assets, so there would be no doubt that this would be a huge positive for them.”
Energy Costs
Energy costs are another major topic of debate this election year and could be a financial boon for boomers if Trump wins a second term. The election’s outcome will significantly affect what people pay for gasoline and electricity, what appliances they can buy and their costs, what kind of cars will be in dealer showrooms and at what prices, and how much power China will have over America’s supply chain. While Congress has the power to pass major energy bills, the president ultimately has the authority through regulations enacted by individual agencies. Lowering energy costs could be a boon for boomers and all consumers, according to Gregg.
Interest Rates
Another potential benefit for boomers under a second Trump term is lower interest rates. Lower rates are inevitable and will mostly be the work of the Federal Reserve. “Lower interest rates are a huge win for borrowing for people of all ages, particularly boomers,” Gregg said. “They can lead to better borrowing conditions and, in turn, better financial conditions for boomers.”
When it comes to financial boons and investments, Gregg noted that it has generally been easier to make predictions for President Trump than President Biden. Wall Street investors and the stock market tend to react favorably to Trump’s moves in fairly predictable sectors based on his past economic policies. This predictability can be advantageous for boomers who are concerned about their financial futures.
Conclusion
In summary, baby boomers, a significant and influential voting bloc, are deeply concerned about the economic policies of the presidential candidates. A second Trump term could potentially offer several financial benefits for boomers through lower corporate taxes, reduced energy costs, and lower interest rates. These factors could alleviate some of the economic pressures that boomers are currently facing, making their support crucial in the upcoming election. Whether these potential benefits will be enough to sway their votes remains to be seen, but they undoubtedly add an important dimension to the political landscape as the election approaches.
