Two things I've bought in Biden's lame duck period
Disclaimer: I cannot see the future
No one has a crystal ball.
No one can predict exactly what this guy means and doesn’t mean.
And by guy I mean the once and future President of the United States.
I honestly—honestly—cannot decipher what he’s saying to Dave Ramsey in this video:
But one thing I know, having lived through his first term, is that Donald Trump can follow through on plans that once seemed outrageous. (Like a Muslim travel ban in a country founded on the freedom of religion, among others).
So, I bought exactly two things ahead of potential tariffs, which would raise prices on imported goods for consumers, as this Trump voter slowly came to understand:
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I bought batteries. One for my 10-year-old laptop (which wouldn’t work without being plugged in) and one for my iPhone (an iPhone 12 Mini that functions very well, thank you very much).
I know Americans who think Trump will be better for the economy really believe that. I know that the amount of inflation we’ve experienced since the pandemic has impacted people working several minimum wage jobs more than it has me or my friends buying $7 coffees in Brooklyn. I cannot fault people for pining for a time when life was easier on their wallets. When working one job was enough to feed their family and pay for a mortgage.
This Substack does a wonderful job of breaking down the state of inequality in the U.S. and what’s really hurting people’s wallets (it’s not eggs, entirely):
But with all this talk of tariffs I can’t help but feel like those Trump voters are in for a huge, rude awakening if their man gets his way and can’t be convinced otherwise.
We, in the middle and working class anyway, will feel the impacts of tariffs. Trump and his millionaire and billionaire friends will not.
Trump’s tariff plan, according to The Tax Foundation, a non-partisan think tank, would raise taxes on consumers by this much:
“In 2025, a 10 percent universal tariff would increase taxes on US households by $1,253 on average and a 20 percent universal tariff would increase taxes on US households by $2,045 on average.”
People who defend Trump on this policy can only argue that he’s bluffing and using this tariff talk as a negotiating tactic.
Again, he’s done things we didn’t think he would do.
Again, we can’t know the future.
All we can focus on is what we can do in the present.
For me, that’s buying batteries.
And laughing to keep myself from imagining the worst.
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Enjoy time with your loved ones this holiday week.
And if you see an avocado at the grocery store, maybe treat yourself now.
More reflections on PERMA, an antidote in financially uncertain times, next time.
-Bethel
P.S. I’m building out the nuts and bolts of my financial coaching business. If you’d like to be added to a delightfully expanding list of people interested in becoming a client once I launch, just reply to this email or message me. I’ll be offering discounts on packages for the first cohort of clients as I build up experience hours.
We didn't have enough factories making them here and China (and other countries) shut down their factories to try and contain Covid.
I believe there were also issues with clearing the ships coming in.
Sometimes with tariffs, the consumer pays higher prices.
Sometimes, the exporting country just finds a different market with fewer hassles.
I know some people are panicked that the economy could crash depending on what Trump’s administration actually does. I have no idea, and will not make a prediction. But if things go wrong and unemployment soars, the most important asset is a support system of friends and family. So consider investing a little money in hosting a cookie exchange with your neighbors or having some people you would like to know better over for a pot luck dinner. A little cash in the bank is important, but it takes more than savings to get through the really hard times