How Trump’s Economic Overhaul Might Yield Significant Benefits

As President Trump unveils his economic agenda, there’s one question that hasn’t been frequently posed: What if it actually succeeds?

Trump’s supporters are cheering for a positive outcome. In contrast, his detractors, driven by a mix of envy and personal interests, hope for a failure.

However, what would actually unfold if Trump were to realize his objectives?

The White House has not published a comprehensive document outlining its economic strategy. Nevertheless, based on recent initiatives and statements from Trump’s top economic advisors, the contours of his agenda are becoming evident.

Initially, he aims to boost wages for working-class Americans, which serves as a fundamental basis — although not the only one — for his tariff strategy.

Trump seeks to incentivize businesses to relocate manufacturing back to the United States, and indeed, we have already witnessed several major investment announcements following the introduction of his tariff plans.

More than 70 nations have reached out to the White House to discuss mutual tariff-reduction agreements, with Israel’s Benjamin Netanyahu visiting Washington Monday to negotiate one on-site.

Additionally, curtailing illegal immigration will further enhance working-class wages. While some argue that illegal immigrants “perform the jobs Americans refuse to take,” it’s more accurate to assert they “do the jobs Americans won’t do for ridiculously low pay.”

Progressives have historically recognized this essential truth.

Back in 2008, Jared Bernstein, a longstanding advisor to Joe Biden, penned, “A surefire method to reconnect the fortunes of working people to the growing economy is to let the job market tighten. A tight job market pressures employers to raise wage offers to attract and retain the workers they require.”

Conversely, Bernstein noted, “One equally surefire method to undermine this beneficial dynamic is to increase immigration when any group’s wages rise.”

Years later, that’s precisely what the Biden administration opted to pursue.

The Congressional Budget Office predicted last year that the surge in immigration under Biden would suppress wages for at least the next decade.

Trump’s immigration policies aim to counteract this effect.

Moreover, Trump intends to simplify the processes for starting, running, and expanding businesses, and to make hiring legal workers easier by reducing federal regulations. This approach will enhance employment, increase wages, and boost tax revenue.

Additionally, extending his 2017 tax cuts — as the Senate confirmed last week when it moved forward with its budget “reconciliation” process — will provide further support for working families.

Secondly, Trump is focused on lowering federal spending, reducing deficits, and curtailing the national debt.

In fact, his tariff initiatives are already contributing to this reduction — even before their implementation — by decreasing interest rates on Treasury bonds.

The lower the interest rate, the smaller our debt obligations will be, reducing the need for tax hikes or program cutbacks to manage the budget.

This is crucial: The nation had been rapidly moving toward financial crisis.

Lower Treasury bond rates will also contribute to controlling inflation — which has been exacerbated by the government’s reckless spending during the COVID pandemic and subsequently under Biden.

This represents a substantial benefit for the finances of working families. The ongoing decline in mortgage rates, which parallels the drop in Treasury interest rates, also plays a role in this positive trend.

Third, the president is working to starve the funding for a variety of political, managerial, academic, and media elites while simultaneously diminishing their influence.

Elon Musk’s initiative has unveiled just a fragment of the numerous schemes and frauds that these groups have profited from, amounting to billions — potentially trillions — in recent years.

Trump is dismantling these insider patronage networks, which often involve the misappropriation of government funds through a variety of think tanks, nonprofits, and NGOs, established over decades.

He’s jeopardizing their prestige and their exaggerated positions, and their outcries are only beginning.

Finally, Trump advocates for increased democratic accountability.

The decline of the “invisible government” comprising unelected bureaucrats, NGOs, and similar entities will restore power to elected officials, answerable to the electorate — and this is something Democrats resist.

This weekend’s “Hands Off” protests were indicative: By urging the elected president to keep his “hands off” the government, they were essentially telling ordinary citizens to keep their hands off this bloated, unresponsive bureaucracy.

So, what if Trump’s policies are successful?

We could witness a rapidly expanding economy with more jobs and improved wages for Americans, especially those in the working class.

The budget could trend towards balance.

The “parasite class” of bureaucrats, academics, lobbyists, and others may find their influence significantly diminished.

Moreover, the nation may cease funneling funds into the hands of unproductive individuals.

This is precisely why Trump’s critics are not concerned about his potential failure: they fear he will succeed.

Glenn Harlan Reynolds is a law professor at the University of Tennessee and the founder of the InstaPundit.com blog.