HONOLULU (KHON2) — Analysts say it’s “wait and see” on how President Trump’s proposed campaign policies will affect our local economy.
The Dow Jones, NASDAQ and S&P 500 all soared to record highs Wednesday, a day after the election.
“That’s to be expected whenever an election concludes, because there’s less uncertainty about what’s going to happen,” said Dr. Gerard Dericks, Hawaii Pacific University economics professor.
“This is obviously a spike,” said Dr. John Hart, Hawaii Pacific University communications professor. “So if you wanna get in on this, get on quick, and then watch it close. Cause at some point, this bubble will burst.”
One recent hot issue – tariffs on imported goods, like from China. A tariff is a tax paid by the company bringing in the product. Meaning their cost increases, meaning the consumer cost increases.
“How much does that help the person that shops at Walmart?” asked Hart. “Because guess what? That’s where most of their stuff is from.”
Another key proposal – no tax on overtime and tips.
“So that could be a useful bonus to workers here in Hawaii in those industries that are earning tips,” said Dericks.
“How much that will actually help someone? We’ll see,” said Hart. “I would question how much tips people are reporting right now anyways.”
And there’s cost of living and mortgage rates. The Federal Reserve is expected to cut rates again. And mortgage rates usually follow. But analysts say we likely won’t see a dip in mortgage rates until next year.
“They did make an adjustment, it’s the right adjustment,” said Hart. “We won’t feel it until Trump is in office. But then Trump, of course, will get the credit. So the president is the quarterback. You know when you win you get the credit, when you lose, it’s your fault.”
“Well, I think there’s a tendency to be overly concerned about the winner of a presidential election,” said Dericks. “Yes, it’s important. But we have a stable society, a stable democracy, and the world’s best economy. And I think either way, it’s going to continue that way in the foreseeable future.”