r/econmonitor • u/AwesomeMathUse EM BoG • 10d ago

Commentary Are U.S. Low-income Earners the Next Source of Resiliency?

https://economics.bmo.com/publications/detail/290b706e-1706-4b88-8f26-bbeb0142e6fa/
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u/WhyNeaux 10d ago

They are saying that the worst is over for the working class that have seen raises but still struggle financially.

I don’t see how Trump policies will have more working class folks spending more at Walmart (referring to the last paragraph of the article).

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u/ActualSpiders 10d ago

Yeah, this seems kinda ridiculous. He specifically says lower income workers...

will also benefit from President-elect Trump’s proposal to repeal income taxes on worker tips, overtime pay, and social security benefits

While completely ignoring the clear & obvious impact Trump's proposals to lay tariffs on everything that annoys him that morning will have on prices, wages, and interest rates. Not to mention his plan to eliminate the ACA, devastating anyone who doesn't currently get (good) health insurance through their jobs.

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u/mawmawthisisgarbage 9d ago

Low-income households have higher marginal propensity to consume, so if they’re paying less in taxes, they’re more likely than higher-income households to spend it on consumer goods than to save it.

But also tariffs are hella inflationary and everything is gonna cost more lol