If you are expecting a golden age for America when the Republicans take control over the entire federal government, you are bound to be disappointed unless you are among the predatory people feasting on the federal purse as if the budget were an all-you-can-eat buffet.
With Donald Trump officially entering his second term in office, his “America First” agenda is set to take on new significance, building upon the foundation of his first term with fewer of the gaps and challenges he encountered during his previous four years in office.
His plans appear poised to double down on many of the policies that made his initial presidency a source of contention.
Reflecting on his first term, Trump’s approach was largely defined by economic nationalism, deregulation, tax cuts, and a barbaric approach to immigration.
While his policies were designed to reinvigorate America’s manufacturing sector, reduce the tax burden on corporations, and restore national sovereignty, their long-term impact on working-class Americans remains debatable.
Trump’s stated goals for his second term focus on continuing these themes but with a stronger emphasis on reshaping the American economy and society in line with his vision of national self-sufficiency and cultural conservatism.
The Tax Cuts and Jobs Act of 2017 remains one of the most defining achievements of Trump’s first term. By slashing the corporate tax rate from 35% to 21% and cutting individual tax rates (with a temporary reduction for middle-income earners), Trump claimed to stimulate economic growth, create jobs, and increase wages for working-class Americans.
However, the practical outcomes often did not match the rhetoric.
While corporations saw record profits and stock buybacks surged, working-class Americans saw few immediate gains. Wages remained stagnant in many sectors, and the promised job creation did not materialize in a way that significantly benefited blue-collar workers.
In his second term, Trump is pushing for further corporate tax cuts and deregulation of key industries, including energy, pharmaceuticals, and finance.
He has already signaled plans to make the tax cuts permanent, potentially providing further benefits to corporations and high-income individuals. The long-term impact on working-class families, however, could be less favorable.
The $8 billion he added to the budget deficit was worsened by the 2017 tax cuts and more fiscal recklessness may lead to cuts in vital social programs like Social Security, Medicare, and Medicaid—programs that disproportionately benefit working-class and low-income Americans.
Trump’s second term is likely to continue this trend of fiscal conservatism, potentially limiting the ability of the government to support vulnerable populations with health, housing, and food assistance.
Deregulation was another hallmark of Trump’s first term, and it remains a central focus in his second term as well.
The rollback of environmental regulations allowed the fossil fuel industry to expand and reduced oversight on emissions from factories, coal plants, and other major polluters. Trump’s supporters praised the move, arguing that it spurred job creation in the energy sector and reduced unnecessary government intervention.
However, the deregulation often came at a public health cost, particularly for low-income and minority communities, who are more likely to live near factories, refineries, and other sources of pollution.
Trump’s second term is set to continue with dangerous fossil fuel policies, including efforts to expand oil drilling on public lands and in protected areas. While this might create jobs in some regions, the health impacts of increased pollution could disproportionately affect working-class families, leading to higher rates of respiratory illnesses, heart disease, and cancer.
One of the most contentious areas of Trump’s first term was his approach to healthcare, particularly his repeated efforts to repeal the Affordable Care Act (ACA).
Despite failing to fully dismantle the ACA, his administration did manage to eliminate the individual mandate, a key component of the law.
Trump’s first term also saw attempts to cut Medicaid, Medicare, and other vital social safety programs. Working-class families, particularly those who rely on government programs for health coverage, were especially vulnerable to these changes.
Looking ahead to his second term, Trump’s plans indicate an even more aggressive stance on healthcare. Vice President-elect JD Vance has suggested the Trump administration would make some changes to the ACA, including allowing insurers to divide enrollees into different risk pools and offer different plans based on those health risks.
Trump expressed a preference for Medicare Advantage so it is likely that he will try to give profit-seeking private insurers more control over Medicare, which is bad news for individuals covered by these hybrid schemes.
He has expressed support for measures like block-granting Medicaid to states, which could result in cuts to the program and a reduction in access to healthcare for low-income families. The working class is likely to bear the brunt of such policies, as they are most reliant on public healthcare programs.
While Trump has touted the potential benefits of a market-driven healthcare system, it remains clear such policies will not reduce healthcare costs for ordinary Americans although they may cause premiums and out-of-pocket costs to rise.
Immigration reform, which was one of Trump’s central campaign issues in 2016, remained a contentious point throughout his first term.
His administration’s policies included building the border wall, enforcing strict immigration laws, and instituting a controversial family separation policy at the border.
Trump argued that these measures were necessary to protect American workers and preserve national security. However, critics contended that these policies were inhumane and detrimental to the American economy, particularly in industries reliant on immigrant labor, such as agriculture, construction, and hospitality.
In his second term, Trump is likely to push even harder for border enforcement and restrictions on legal immigration. His plans include expanding the border wall further and tightening visa and work permit systems for foreign workers.
While these measures may satisfy his base, they could lead to labor shortages in industries that depend on immigrant labor. Additionally, these policies could result in higher costs for consumers, as employers may pass on increased labor costs to the public.
Although some working-class Americans may benefit from reduced immigration in the short term (due to less competition for certain jobs), the long-term consequences of a shrinking workforce could hurt the economy overall, especially if automation does not fill the gaps in labor demand.
Trump’s trade policies, particularly his trade war with China, had significant effects on the working class during his first term.
While Trump touted tariffs as a means of protecting American manufacturing and addressing unfair trade practices, these policies often led to higher prices for consumers. For example, tariffs on steel and aluminum raised the costs of everyday goods, such as cars and appliances, and hurt industries reliant on these materials.
Additionally, farmers were particularly hard-hit by retaliatory tariffs from China, which targeted agricultural exports like soybeans, corn, and pork.
Trump’s second term is likely to bring a continuation of his protectionist trade policies. He has indicated plans to renegotiate trade agreements with countries like China, Mexico, and the European Union, aiming to secure more favorable terms for American workers.
However, while these moves might provide some short-term gains for certain industries, they could also raise consumer costs and disrupt supply chains. Small farmers and manufacturers may benefit in some cases, but it’s unclear whether these policies will revitalize the American industrial base or whether they will leave the working class struggling to adapt to global economic changes.
The overarching theme of Trump’s second term appears to be a continued focus on economic nationalism—prioritizing American businesses, jobs, and industries over global cooperation and trade.
However, the unintended consequences of his first-term policies suggest that his second term could see rising inequality, increased financial instability for low-income families, and greater environmental degradation.
The continued push for tax cuts for the wealthy, deregulation, and immigration restrictions could leave the working class with fewer opportunities for advancement and less access to basic services, including healthcare and affordable housing.
While Trump’s rhetoric promises a revitalized America, it remains to be seen whether his second-term policies will lead to the kind of economic prosperity that his supporters expect.
The focus on corporate interests, fossil fuel expansion, and border enforcement may deliver short-term gains in certain sectors, but they could also deepen the divide between the wealthy and the working class.
As Trump seeks to enact his vision for a more nationalist, economically self-sufficient America, the challenge will be ensuring that the benefits of these policies reach those who need them the most—and that the unintended consequences of this agenda do not exacerbate the inequalities already present in American society.
The success of Trump’s second term, like his first, may ultimately be judged by how well it addresses the pressing needs of the working class and whether the economic revival he promises actually reaches the people who need it most.