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The presidential election is fast approaching, and whoever is elected will impact everything from laws and regulations to economic policy. With Gen Z just entering adulthood and Baby Boomers beginning to retire, a second term for Donald Trump could impact each generation and their money differently.
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For Gen Z, those born between 1997 and 2012, President Trump’s reelection could mean changes in areas like higher education, environmental issues, and even the types of employment opportunities. So what should Gen Z expect? Here are four ways that President Trump’s reelection could affect Gen Z differently than Baby Boomers.
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Student Loan Forgiveness
Most members of Gen Z are approaching college age or have graduated from college within the last few years. Former President Trump called for the elimination of programs such as Public Service Loan Forgiveness during his term, but has criticized the Biden administration’s plans, so talks and proposals to help students get rid of their student loan debt are likely to be halted, CNBC reported.
Additionally, according to CNN, the president said he wants to completely shut down the Department of Education in late 2023 and eliminate Pell Grants, the Work-Student Program, and federal student loans, making it harder for Gen Z to pay for college and get a degree without taking out high-interest loans. For most Baby Boomers, student loans are not something they have to worry about.
“Generation Z is currently struggling with high tuition costs and significant student loan debt, so policy changes in this area could have major implications,” said Dennis Shirshkov, an economics professor at City University of New York and Summers’ growth director. “A second term for Trump could see him continue policies that favor private loans over federal aid, increasing the financial burden on young graduates. Baby Boomers, who are nearing the end of their education and focused on retirement planning, would be less affected by these changes.”
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Economy and Job Market
A big question for both Gen Z and Baby Boomers is how President Trump will impact the economy and the job market. President Trump previously passed the Tax Cuts and Jobs Act in 2017, which is set to expire in 2025. As part of this tax reform, many Americans’ tax brackets were lowered and the standard deduction was increased, allowing many Americans to pay lower taxes and receive more tax breaks.
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According to the Brookings Institution, President Trump has expressed interest in making permanent items expiring next year, which could lead to greater economic stability and job opportunities for Gen Z. Additionally, his policies on trade and immigration could create more opportunities for Gen Zers just starting out in their careers.
health care
According to the Associated Press, President Trump has announced his plans to replace the Affordable Care Act, also known as Obamacare, with a new health insurance plan that Gen Z members may consider to meet their needs, as most of them may not yet have employer-sponsored health insurance.
President Trump has said he wants to develop cheaper and better plans to help Americans stay healthy, which could include continuing his executive order requiring the U.S. government to pay the same drug prices as other developed countries, which could make drugs cheaper and more affordable for Gen Z.
Environmental concerns
Climate change and environmental issues are top of mind for many Gen Zers, but under a Trump administration, many of the protections and environmental regulations that have been put in place could be rolled back.
During his first term, President Trump withdrew from the Paris Climate Accord and has been skeptical of climate change. A second term for President Trump could mean that environmental protection and climate action will be even less important. While Baby Boomers may be less affected by these policies, for Gen Z, these decisions could have long-term effects on their future.
“During Trump’s first term, environmental deregulation and immigration changes prompted significant increases in youth activism and voter turnout,” Shirshkov said. “A repeat of these policies may further inspire Gen Z to advocate for institutional reform, while Baby Boomers may value stability and cherish traditional values.”
Additionally, a second Trump term could mean changes to the Inflation Control Act (IRA) tax deduction: “Trump campaign officials told the Financial Times that the administration is looking to cut spending allocated to the IRA tax deduction, saying the amount is ‘grossly underestimated,'” Utility Dive reports.
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President Trump’s reelection could mean different things to Gen Z than it did to Baby Boomers in many areas. From student loan forgiveness and access to higher education to the job market and environmental issues, Gen Z is likely to be more affected, so it’s important to know what each candidate brings to the table and understand how it will impact you and future generations.
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to provide objective coverage of all aspects of the economy and balanced reporting on politically focused financial stories. More coverage on this topic can be found at GOBankingRates.com.
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This article originally appeared on GOBankingRates.com: 4 ways Trump’s reelection will affect Gen Z in ways that differ from Baby Boomers
