President Donald Trump takes the stage on his way to the Lima (Ohio) Army Tank Plant, where he spoke about manufacutring jobs and defense spending. (Photo by Shealah Craighead, White House)
The impact of the Trump era on Arizona’s economy
When looking at the effects of the Trump administration, it is clear to see that the reception has been rather mixed. With a vast number of changes to important policies such as the Paris agreement and the Iran nuclear deal, it is clear to see that this administration is set on undoing the work of the previous Obama administration. In this article, we are looking at how the economy in Arizona had been affected during these changes and how it is set to change during the remainder of his time in office.
As part of the “America first” economy plan, the Trump administration has implemented tariffs on those looking to trade with the US making it beneficial for the economy as a result. This has been a sticking point in recent months between the US and China as the trade war negotiations continue. In recent months, Donald Trump has threatened to increase the tariffs to around £236.4 billion after the G20 summit. This has a profound effect on international trading as there are steep taxes being placed on products being offered for trading which can have long-lasting effects if not dealt with accordingly.
These increased prices between two of the world’s biggest economies are then leading to many being apprehensive to trade. Subsequently, this has influenced the US economy with many US consumers seeing an increase by as much as 9% in commodities such as steel. However, it has not yet derailed the overall daily trade of the Foreign Exchange. However, with these tariffs slowly increasing and no sign of reaching an agreement it is entirely possible that this can begin to affect trade as we know it today.
Changes To Border Control
Another way that Arizona’s economy is being affected by the trump administration is through changes to border policy. As mentioned during Trump’s presidential campaign, the administration’s plan to build a wall to stop illegal immigrants entering in from Mexico. Despite this not being passed by those in Congress, the bill indicated that the wall would be paid for by the Mexicans. Though this does not directly involve Arizona, this can still have an effect on their economy as there is a $15.5 billion-dollar trading relationship between Mexico and Arizona per year.
This is a huge amount of funding that would be lost should the border be introduced. However, a tweet from Donald Trump in November of 2018 suggested that the president would “close the border permanently if needs be” which could suggest a drop in the economy in Arizona in the coming years.
The Federal Tax Reform
Another challenge of the trump administration on the economy in Arizona is the changes to the federal tax reform. These changes indicated a change in taxes to help reduce the number of taxis that low-income households wear having to pay. In 2017 the bill was signed to implement this tax reform, and this has had a profound effect on the amount members of the public are paying in taxes. This is influencing the working class in Arizona which are often left with much less disposable income as a result.
Common Core Standards
The final effect that the trump administration has had on the economy in Arizona is through the common core schooling initiative. Though this centralised approach to education does not directly affect the economy, it is still making an impact as it is giving students leaving school the knowledge to pursue higher paying jobs as a result. This is important in terms of the economy as the longer children are spending in school, the less time they are spent earning money and contributing to the economy. Although this is only subtle, it is important to note that this can have a profound effect over time as less money is being put back into the economy.
With all this in mind, there are several ways that the trump administration has influenced the economy in Arizona and these are only set to continue with the last two years of trumps presidency. This is due to pressing issues such as the bill to build the wall and other reforms still yet to be passed through Congress. However, with only two years left, it is entirely possible that the Trump administration may not be elected for another 4 years, if this is the case this could be the difference in getting some of these bills passed. Though Trump is a controversial figure in the world of politics, there are a number of people both in Congress and internationally that agree with these reforms as well as others proposed by the administration, therefore giving the president the support he needs to win over the key states.
Should he be successful and gain another four years in office, the effects of the administration on the U.S. economy could begin to worsen as larger political issues such as the U.S. and China trade war can have begun to take a hold on valuable commodities which could then affect the economy as a whole.