Trump's Challenges: A Path to Recovery

America has chosen.

Donald Trump has been elected the 47th president of the USA in an historic return to the White House, being just the second president to serve two non-consecutive terms. Much of America’s recent history has revolved around an ever-changing rhetoric regarding the economy, immigration, reproductive rights, racial inequality and many more. He must unite America and address the furthering divide between people on both sides of the political aisle, regardless of ideology. Furthermore, he must set aside political ambition by putting American’s first and to do this, must address the myriad of issues that plague it.

In many polls, voters have said repeatedly that the economy is the number one issue that needs to be handled better. Much of what has led to the decline in the US economy is down to the US national debt which currently sits at about $35 trillion USD. Since 1971, the Federal Reserve has run budget deficits (spending more than they tax) which has caused increased inflation and less-affordable living standards. This is crucial because it indicates the constant disregard for taxpayer’s money and a misallocation of resources which has led to the crowding out of the private sector. Because of this, prices have risen extortionately, due to the large expansion of the Federal Government, subsequently meaning less competition within the free-market. Not only this, but the debt to GDP ratio sits at a staggering 135%. These are historic numbers. Both are huge contributors to the fragility of the current US economy which are causing soaring prices; oil, gas, house, groceries etc. If not addressed, the problems will continue to exacerbate and prices will increase, meaning less-accessible commodities for American’s.

Although Trump represents a supposedly more fiscally-conservative party, as President he increased the government debt by $1.8 trillion dollars whilst also cutting taxes, increasing consumer prices and real-inflation. Although many can say that prices were cheaper under his administration than under Biden’s, this has simply been a small representation of what has been going on for decades. Yes, the inflation rate may have been, on average, lower under Trump, goods were still higher in price than when Obama was in charge. His prices were also higher than those of George W. Bush when he was in leadership. There’s a pattern emerging here. Prices have been increasing steadily for centuries. This is without mentioning that Joe Biden has also spent well over what the Federal Government has taxed. Debt held by the public has grown by $6.0 trillion during President Biden’s three years and nine months in office with inflation rising over 20% in just under four years. 

A crucial part of getting the USA’s economy back on track will be increasing its workforce. Getting the workers back to work will mean a better circular flow of money and should lead to growth. To do this, the government must reduce regulation that stops competition within markets and allow businesses to operate independently. This could be achieved through the introduction of DOGE, or the Department of Government Efficiency, as humorously labelled by tech mogul and Trump supporter, Elon Musk. In theory, Musk aims to cut many poorly-managed government agencies and by doing this, reduce the size of the Federal Government, subsequently leading to better competition in the private-sector and less regulation. As promising as this may sound, materialising this may be more difficult than it seems. Cutting thousands of government officials could take years and would come with much backlash, not to mention the impact it would have on unemployment. 

Unfortunately America's issues don't stop there. In the past four years, the US has faced an unprecedented number of illegal border crossings with a large increase in free handouts to newly arriving migrants. Also, the number of deaths, at or within close proximity to the border, have risen significantly since 2021. Part of the failing immigration system is with the asylum process. The Border Patrol Agency faces an historic number of people waiting to be approved with The Department of Homeland Security reporting that at the end of 2023, there were more than one million pending affirmative asylum, with at least 786,000 of the one million (or approximately 78 percent) pending for over 180 days. There are also many who are illegally crossing the border and setting up immigration camps near the border, taking up public spaces and increasing the dependency on hand-outs from the government. A significant statistic regards those who are actually working as border-patrol agents. Just over 4,200 border agents have left the federal agency between October 2020 and April 2024, which is roughly 25% of its work-force. Trump must make haste in order to address the issue at the border. House prices will continue to soar if the rate at which people coming into the country increases or even remains the same. 

Americans seem disinclined to care about their future though: there is no sense of personal responsibility in terms of debt control. In February, it was reported that aggregate American credit card debt sat at $1.13 trillion dollars with the personal savings rate dropping to 3.4% in September. Childcare costs are also increasing. Between 1990 and April 2024, the cost of daycare and preschool rose 263%, according to KPMG. The consumer price index, the government’s key measure of inflation, increased 133% in the same time frame. The rate at which childcare pricing has risen is a major contributing factor to America's falling birth rate which is why people are now having fewer children and at a later age. Placing two children at a child care centre costs at least 25% more than the typical rent, on average, in every state in the US. And the tab exceeded annual typical mortgage payments in 45 states, plus the District of Columbia, according to Child Care Aware. 

Trump now has the mammoth task ahead: fixing America from the ground up, inside and out. He must take initiative to address the decline by crucially trying to reverse at least some of the past decades of political-illiteracy and reinstate the USA as a true superpower on the world stage. Trump has been given a clear majority in the election and at the time of writing, seems like he will surpass 300 Electoral College votes. This gives the Republican Party a clear mandate to deliver for the American people and provides an incentive to quite literally, ‘Make America Great Again’. America is meant to be the ‘land of the free and the home of the brave’. Can it continue to be? We’ll see.