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Your cost of living is going to go up...
I hate to be the bearer of bad news, but...
What can we expect from a Trump presidency?
One promise Trump has repeatedly made is to put up trade barriers...
Explicitly, he's said...
He's going to have a 45% tariff on goods from China.
He's going to put up a 35% tariff on products from Mexico, to force American manufacturers to relocate back to the USA.
He's going to force Apple to make their iPhones in the USA.
This will be good for jobs... But the prices for everything are going to go through the roof.
Let's take one example, the Apple one.
Foxconn makes Apple iPhones in China. They pay their workers $1.85 per hour.
If Apple opens a factory in the USA, will they be able to pay their workers $1.85 per hour? Of course not.
If Apple made its phones at home, the price of an iPhone could jump from $650 to $1,300 or more...
In fact, we're lucky if the price just doubles.
This will be true of every product now made in China, Mexico, or wherever else Trump wants to force manufacturing to come back...
I'm not saying this is bad. More jobs is a good thing.
It's especially good for the younger folks, since most of the new jobs will go to them.
I'm just stating the facts - there's always a price to pay, and that's the price.
If you're not one of the younger folks getting a job, it means this. You're going to spend a lot more of your hard-earned cash, to get the same as what you get for it now...
That means, you better know how to make more money, if you want to keep your lifestyle...
Those are some hard facts we will probably see in the next year or two ahead (depending on how fast these trade barriers go up)...
If you don't know how to bring in as much cash as you want, now is the time to start learning.
Last edited by Dien Rice : November 18, 2016 at 12:22 AM.