How much would Donald Trump’s economic plan impact regular New Mexicans? That’s been hard to pin down, in part because Trump declined to give specifics for months.
But after Trump rolled out some components of his plan last week, the number crunchers got to work to see just how the Trump plan would impact homeowners and working families in each state.
In New Mexico, you, me and every family who owns a home would see an average $63,000 drop in home values if Trump defaults on the national debt to force a “better deal.”
Here’s what you need to know:
Just last week, in a speech to the Detroit Economic Club, Trump laid out his clearest vision yet of the economic policy changes he would prioritize as president: tax cuts that favor the wealthy, including a reduction in the top tax rate, the elimination of the estate tax, and a doubling down on other tax treatments that help the wealthiest while removing safeguards that have protected Americans’ consumer, environmental, and other economic interests. Like proponents of trickle-down economics before him, Trump ignores the mounting evidence that the policy has failed to produce income and other economic gains for anyone except the wealthy.…
An analysis by research firm Moody’s Analytics that looked at Trump’s earlier tax proposals estimated that full enactment of his policies on tax, immigration, and trade—that is, slashing taxes by $9.5 trillion in a way that overwhelmingly benefits the richest Americans, deporting the country’s 11.3 million undocumented immigrants, and significantly altering U.S. trade policy—would start a recession in early 2018 that would last into 2020. There would be as many as 3.5 million fewer jobs by the end of his first term as president.
Still, in his speech on Monday, Trump left out a key piece of his plan for the economy: his proposal to make a so-called deal on the national debt to not fully pay back U.S. creditors—essentially a default. Such a move would cause a sharp increase in interest rates, as lenders would require extra money to compensate them for extra risk.
The Center for American Progress Action Fund estimates that this would have a ripple effect throughout the economy, destroying middle-class wealth and jobs. A default on the national debt could cost a typical homeowner $72,000 in lost home value and kill 3 million jobs. And this default may be one of the very first actions that Trump takes as president, since the United States will need to raise the debt ceiling in March 2017.
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