Mr. Trump has been recognized as the President-Elect. Where do we stand? What specific things might we be looking for as businesses to make sure that we understand the effects of the election, or capitalizing on any opportunities? What might be affected?
Mr. Trump’s platform was not as developed as many other candidates had been in the past. There’s not a lot of detail about what and how he wants to do things, but from his comments, we do know he will focus in certain areas. These areas may be places that businesses want to pay attention.
#1 International. Mr. Trump got a good deal of popular support because he was showing US favoritism. In his speech, the night he was declared the winner he noted that he will negotiate hard with international countries, that he will be pro-America and put America first. But he will also be cooperative and work with those that cooperate with the United States. This is a good sign for many businesses since most of our businesses, at this point, are at least affected by international trade. Even if we don’t do business directly internationally, we probably work with people who are doing international business. This is an opportunity for us to develop our businesses internationally. Let’s be on the lookout though, if we’re doing business or indirectly affected by a country which does not cooperate with the US (whatever that standard means), then this might be an early warning sign.
#2 Immigration. Mr. Trump’s going to put a great focus on immigration. He’s talked about whether he would have undocumented workers (also known as illegal aliens) leave the country. We’ll have to see what happens on that and the disruption. Those persons are very strong participants in the informal economy. They have a lot of effect on some businesses, that may be suppliers or indirectly involved in your businesses’ economy. I’m guessing most businesses aren’t directly hiring these people because it is often illegal to do so, but they do have an effect on our economy. We’ll have to see what the ripple effects are from an updated immigration policy.
#3 Taxation. Mr. Trump was a Democrat for a long portion of his life, and recently became a Republican. He’s talked, generally, about the burdens on businesses of regulation and taxes. He hasn’t really espoused a policy to restructure the tax code in a significant way. I think we’ll see some movement in the tax area at some point, but it’s difficult to predict exactly what type of tax regime Mr. Trump’s envisioning, and what he can work through with Congress. At this point, I think we should plan on taxes to be about in the same range they are now, at least for the short term. Longer term, we’ll see how that affects businesses, and business growth, and whether lower taxation can help some of the growing businesses put more money to work.
#4 Health care. Mr. Trump has expressed a disdain for Obamacare. We could expect to see some dismantling of the current system. Mr. Trump will likely attempt to take apart what Mr. Obama has developed to date. We’ll have to see what that means, long-term, for healthcare. America has a tradition of having employers provide healthcare for their employees, and we’re just developing a private market as a result of Obamacare. We’ll have to see what the long-term effects of that healthcare situation is on employees and businesses.
#5 Recession. Many economists have been noting that the United States has gone a long time without a recession. We’ve had small growth for some time, consistently, but we’ve not had a recession in quite some time. Economically speaking, a recession may be due. It may be something that’s going to happen sooner than later, regardless of what Mr. Trump does. We need to be on the lookout for warning signs of a recession. We need to be planning our businesses to protect ourselves in the event of lower sales to make sure that we can get through that time, and come out on the other side to a period where we may see significant economic growth in the post – recession adjustment.
What were your thoughts on the election? What were you hoping? Were you thinking about how things will be under President Trump’s administration? Join us in the comments below.
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This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. This article should not be treated as legal advice to any person or entity.
About the Author
Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (www.rshawnmcbridelive.com), gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at firstname.lastname@example.org or (214) 418-0258.
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