How Modern Monetary Policy affects the American Consumer
- On the Money Magazine
- Jul 28
- 2 min read
Braden Samko, Whitney Young, Senior, Fall 2024
In the wake of the 2024 election, representatives of the Democratic and Republican parties, whether it be in the Senate, House of Representatives, or the White House, have expressed nationalist beliefs and ideals that support a domestic economy by limiting foreign trade, imposing tariffs, and providing subsidies to support domestic businesses (Anstey, 2024). Felicia Spivack, Executive Director of Regulatory Affairs and Government Relations, says that we can expect tax cuts and immigration restrictions with the new administration, something both parties have expressed interest in. She notes some impacts of the potential new immigration policy by stating, “(Immigration) could also have an impact on jobs in the U.S. as well as a decrease in the GDP.” Additionally, Bloomberg Economics, a nationwide business news outlet, complements this outlook through a study that found stricter immigration legislation can decrease prices by 1% over the next 4 years and decrease GDP by almost 5% (Anstey, 2024). Another policy expected to be implemented stronger is tariffs. A recent study from the Boston Federal Reserve found that each 10% tariff on China implemented by the Trump Administration caused an increase of inflation by 2.2% (Boston Fed, 2025).
With many political factors impacting American consumers, teens and young adults should be more knowledgeable about the political atmosphere. According to a Junior Achievement study in which 1000 teens were surveyed, 41% of them could not define “tariff.” (Junior Achievement, 2019). Many high school students can pre-register to vote, serve as an election judge, or even vote in the presidential election. Still, how many of these students understand the economic impact of their vote? With the political atmosphere of the US always changing, it’s important to recognize what you’re voting for and how it can impact you and other U.S. citizens.. Whitney Young student Kanoa Lee-Kline reveals his lack of formal education on current political affairs, despite taking Advanced Placement U.S. Government and Politics, by stating, “I don’t learn much about current policy issues in class as much as I hoped to. The course mainly focuses on systemic aspects of government.” Kanoa, just a few months shy of being a voter, demonstrates a lack of awareness of politics and its impact on society, even when taking the most advanced coursework available for their age and level of studies. American politics rely on you, the voter (or future voter!), so it is imperative to understand how economic policy will affect the country and its citizens as consumers.
Sources:
Felicia Spivack, Executive Director Regulatory Affairs and Government Relations, Trustmark
Kanoa Lee-Kline, High School Student, Whitney M. Young Class of 2025
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