They say money makes the world go âround, and thatâs certainly true when it comes to the upcoming U.S. presidential election. Mon. According to multiple survey conducted by Her Campus leading up to this election, the economy is consistently among the top five issues young voters are concerned about when deciding on which candidate to vote for. But although the economy is ranked pretty high on many peopleâs lists, for most of the general public â and specifically young voters who are just learning about their finances for the first time â the topic can be extremely confusing in terms of knowing exactly how different economic policies and plans can affect us.
Thatâs largely because âeconomyâ is a super broad term, encompassing jobs, taxes, housing, international trade, healthcare, education, what you buy at the store, and so much more. Honestly, you can even graduate with an econ degree and still have a lot to learn about the U.S. economy. All this is to say, no one expects you to gain an encyclopedic knowledge about economics between now and Election Day. However, if the economy is something that is going to influence your vote, you should at least know the basics. To get started, here are a few basic things college students should know about the economy before voting.Â
- Unemployment Is Down
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This might be hard to believe, but the unemployment rate is down. Per a September statement from The White House, payroll employment rose by 142,000 in August, lowering the unemployment rate from 4.3 to 4.2%. Considering the job market is top-of-mind for so many college students looking ahead after graduation, this could be a sign that the postgrad job search might not look as bleak as they may have thought.
- Tariffs Arenât As Simple (Or Positive) As They Sound
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If you donât know what a tariff is, thatâs OK! Basically, a tariff is essentially a tax on foreign goods that increases the profit for the imposing government. Different countries have different reasons for imposing these tariffs; this could range from helping local industries to callingo out unfair trade practices.Â
In his campaign, former President Donald Trump proposed a 20% tariff raise for all imported goods, plus a 60% raise for certain Chinese goods. And while on the surface, this might seem like a no-brainer to increase the amount of American-made goods (therefore keeping money in the U.S. and promoting U.S. jobs), according to economist and TikToker Kathryn Anne Edwards (@keds_economist), the U.S. hasnât used tariffs as broad economic strategy in about 80 years, and likely for good reason. âThe only two known consequences of having a tariff is that U.S. consumers will pay higher prices and U.S. producers will be at the risk of retaliation from other countries,â Edwards said in an October TikTok.
- Inflation Is Rough, But The Economy Is Growing
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Another hard-hitting topic? Inflation. I donât know about you, but inflation has definitely been a concern of mine when considering the current economic state of the country. Letâs be real â it seems like the price of everything has been pretty high lately. However, reports show the economy is on its way to getting back into shape in this regard. According to Politico, the economy grew 2.8% throughout July, August, and September. In an Oct. 30 statement, President Joe Biden said of inflation, âWhile critics thought weâd need a recession to lower inflation, instead weâve grown around 3% a year on average, while inflation has fallen to the level right before the pandemic.â
- Student Debt Is A National Economic Crisis
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One important topic that is of concern for the vast majority of college students and grads? Student debt. In our current economic climate, more than 43 million Americans have student loan debt, with the total loan debt owed adding up to $1.75 trillion. Student loan forgiveness is a growing conversation during this election season as many voters have their eyes peeled to see how the candidates plan to approach a topic that affects so many.
During her run as Vice President, Kamala Harris has played a role in the Biden administrationâs mission to reduce student debt relief by forgiving almost $175 billion in loans for 4.8 million borrowers. In October, the administration approved an additional $4.5 million in debt which could benefit 60,000 Americans. Trump has denounced these efforts; at a Wisconsin rally in June, he called Bidenâs student loan forgiveness plans âvile.â
- Trump & Harrisâs Tax Plans Will Impact People In Vastly Different Ways
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Itâs impossible to briefly sum up both candidateâs tax plans in just a few sentences, but here are some of the finer points: Harrisâs plan for taxes includes what is called an âopportunity economy,â which, according to Forbes, means that Harrisâs plans are to not raise taxes for people earning $400,000 per year or less. In addition, this involves tax cuts for qualified individuals and a reversal of tax cuts on the richest Americans. Harris also proposes support for workers and families, including health care coverage and making housing more affordable. Vice President Harrisâs overall tax plan would likely most impact big corporations, with a proposal to raise corporate taxes from 21% to 28%.
Trump, on the other hand, proposes a plan that will lower corporate taxes to 15% for domestic production. Trumpâs tax plan also entails a tax cut for those in the richest tax bracket â those with an annual income of $914,900 and above could receive an average cut of $36,320 on their taxes. On the other hand, lower and middle class Americans could receive an increase in taxes, with those with the lowest annual income of $0 to $28,600 experiencing an average increase of $790 in taxes. According to CNN, Trumpâs plan for taxes also involves lowering the prices of gas and groceries, which could be seen as greatly appealing to many voters.
Overall, the U.S. economy is incredibly nuanced â and thatâs an understatement! But having some sort of foundational knowledge can help you make the best choice for yourself.
Bestie, do you *actually* know how to vote? We’ve got everything you need to make sure you’re fully prepared for Nov. 5. Visit HowToActuallyVote.com for a step-by-step guide to making your voting plan.