Yahoo Finance 4 Ways a Second Trump Presidency May Affect Gen Z Differently Than Boomers
With the presidential election right around the corner, whoever is elected will impact everything from laws and regulations to economic policies. With Gen Z being the newest generation to enter 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, anyone born between 1997 and 2012, a second Trump presidency could mean changes in areas such as higher education, environmental concerns and even the types of job opportunities available. So what should Gen Z expect? Here are four ways that Gen Z could be impacted differently than boomers in a second Trump presidency.
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Student Loan Forgiveness
Most of Gen Z is getting close to being college-aged or has graduated from college within the last few years. During his term, former President Trump called for the elimination of programs such as Public Service Loan Forgiveness, as reported by CNBC, and it’s likely he’d discontinue any talks or proposals to help students eliminate their student loan debt, as he’s been critical of the Biden administration’s plans to do so.
Additionally, he said in late 2023 that he would like to close the Department of Education altogether, per CNN, eliminating Pell Grants, work-study opportunities and federal student loans. This would make it more challenging for Gen Z to pay for college or obtain a degree without high-interest loans. For most boomers, student loans aren’t something they have or would need to worry about.
“Gen Z is currently grappling with high tuition costs and substantial student debt, making any policy shifts in this area highly impactful,” said Dennis Shirshikov, professor of economics at the City University of New York and head of growth at Summer. “A second Trump presidency might see the continuation of policies that favor private lending over federal aid, potentially increasing the financial burden on young graduates. Boomers, who have largely completed their education and are focused on retirement planning, would be less affected by these changes.”
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Economy and Job Market
One major issue for both Gen Z and boomers is how Trump could impact the economy and job market. Trump previously passed the Tax Cuts and Jobs Act of 2017, which is set to expire in 2025. Part of this tax overhaul lowered the tax brackets for many Americans and increased the standard deduction, with many Americans paying lower taxes and finding more tax breaks.
Per Brookings, Trump has shown interest in making the items set to expire next year permanent. That could help increase financial stability and possible job opportunities for Gen Z. Additionally, his policies on trade and immigration may open more opportunities for Gen Z, who are just starting their careers.
Healthcare
Trump has stated that he plans to replace the Affordable Care Act, also known as Obamacare, with a new healthcare plan, per AP. Most Gen Z may not have access to employer-provided health insurance yet, so they could look at this new healthcare plan to cover any of their needs.
Trump has said he wants to create a cheaper and better plan to help Americans’ health. This could include continuing his executive order that required the U.S. government to pay the same price for pharmaceuticals as other developed countries, which would lower the prices of medications and potentially make them more affordable for Gen Z.
Environmental Concerns
Climate change and environmental issues are top priorities for many Gen Zers. However, under Trump’s administration, we may see a rollback in many protections and environmental regulations that have been put in place.
During his first term, Trump pulled out of the Paris Climate Agreement and has expressed skepticism about climate change. A second term for Trump could mean even less importance on protecting the environment and addressing climate change. Boomers may not be as impacted by these policies, but for Gen Z, these decisions could have long-lasting effects on their future.
“During Trump’s first term, rollbacks on environmental regulations and changes in immigration policy spurred significant youth activism and voter turnout,” Shirshikov said. “A repeat of these policies could further galvanize Gen Z to advocate for systemic change, whereas boomers might appreciate the perceived stability and focus on traditional values.”
Additionally, a second Trump term could mean changes to tax credits under the Inflation Reduction Act (IRA). “Trump campaign officials said in a Financial Times report that the administration would seek to cut spending allocated for the IRA’s tax credits, saying their price tags were ‘wildly understated,'” per Utility Dive.
A Trump Presidency for Gen Z vs. Boomers
A second Trump presidency could mean different things for Gen Z than boomers in many areas. From student loan forgiveness and higher education access to the job market and environmental issues, Gen Z will likely feel the effects more heavily, so it’s important to be informed of what each candidate brings to the table and understand how it could affect you and future generations.
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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