Let me just start off by saying yes, I know he is going to try to blame this on Biden. It's his old standby. It convinces no one but the most extreme MAGA. He is the president. He is personally interfering with the FED. He personally instituted illegal tariffs (they are illegal as of now, anyway, until his rubber-stamp SCOTUS approves them). He pushed the Big Beautiful Billionaire-Blowing Bill--it's his economy. Attach his name to it at all times if you can do so safely.
Let me also start off by saying yes, I know Project 2025 wants a desperately poor and uneducated serf class to do the manual labor and that yes I know JD Vance has a company (or shares in a company) that is buying up the farmland from bankrupted farmers. I also know congress (both parties) loves insider trading, and that a lot of what Trump/his people are doing would be considered market manipulation in a country that regulates such things. So some of this is intentional.
But to be clear, a lot of this is NOT intentional. A lot of this is a bunch of white guys thinking they are geniuses and that regulations are for suckers and they definitely know better. So there is the ineptitude to deal with as well.
Now, let's break down what is probably (more than likely. Incredibly likely even) coming despite the current head of the Federal Reserve Jerome Powell doing what he can to stop it.
We have: far, far less tourism dollars coming into the country right now. In real world terms, like for say, Florida, this is devastating. From my understanding, Florida relies more on sales tax than state taxes, so this is a lack of income. PLUS as this trickles down, and shit always trickles down, unlike money, it means cut hours and cut jobs. It means less money going back into the economy. It means wages stagnate because--with people desperate for work, companies have no incentive to pay competitive wages.
This affects the travel industry as well, and the hospitality industry, and then (again, because shit trickles down), it means all the small businesses that support those businesses (the 24-hour diner by the airport that the airport staff use etc) ALSO lose money and cut hours/staff.
This means people spending less and less money going back into the economy. And I am only on tourism.
(Why is there less tourism? you may wonder if you live under a rock. Well, Trump insulted our main allies and trading partners, including Canada, which *was* a huge chunk of our tourism. Also, ICE and Border Patrol are harassing tourists--so many countries rightfully are advising their citizens not to come here. ADDED TO THAT: we have multiple disease outbreaks now, like measles, because RFK Jr is a poop. In my opinion. Nobody wants to travel to the disease-ridden country where they have no rights.)
Moving on from tourism: The tariffs. The tariffs--which are a tax on American consumers I cannot believe this still has to be discussed and explained to people--are raising prices. The government has also insulted our trading partners (former trading partners. Trumpy and his people are still working on getting those 90 Deals in 90 Days, I believe.) so they are not inclined to start up trade with us again on generous terms. So things cost more.
When things cost more, people spend less. That's just basic working class math. The extra money spent is gonna go to groceries and health care costs and rent. Not to other things. That means (say it with me) less money going back into the economy.
Meanwhile, with those tariffs supposedly meant to stimulate American manufacturing, the price of materials has gone up. It turns out that to do the manufacturing, you need materials to manufacture. (huh. weird.) And most of them, wood, steel, minerals, etc, come from other countries. So that cost has gone up as well. That means less manufacturing, actually, but that's okay since no one here is buying anything we make here and we have no trade deals, so no one overseas is buying anything we make here either.
If only Trump and his people had consulted with literally any economist in the world before this.
Anyway, speaking of American manufacturing, if they had consulted with an economist, even one, they would have noted that because American businesses outsourced shit to other countries years ago, there are very few factories here and no money in the current budget to build new ones. There isn't even money in the BBB to provide tax breaks to anyone trying to build here.
And OH, what's that? The BBB *cut* existing spending and tax breaks for green energy projects? Green energy projects that were providing jobs to many poor areas in red states? Whoopsiedoodle. That's okay. We'll just focus on the few existing green energy projects already going---OH WAIT WHAT'S THAT? ICE arrested a bunch of South Korean workers here on legal visas to help set up such a project in Georgia, and now the project is most likely cancelled even though Trump *begged* for them to come back??
Turns out racism is a bad economic policy in so many ways.
Now, let's get into Trump's Big Beautiful Betrayal Bill. The one that cut the funding for green energy projects to try to put it back into... *checks notes* coal... which was already a dying industry for various reasons and *checks notes again* oil, because someone.... not naming names... someone gave Trump a plane. To convince him to make America buy more oil. Allegedly. So I hear. In my opinion.
I know MAGA like to think that America does not need the rest of the world, but it's a global economy now. It's global, babes. Which means the rest of the world is moving to electric cars, and in any case, does not want giant ugly American gas guzzlers, so the only market for oil/gas-powered cars is really America.
And cars cost more to make here now because... oh yes the tariffs! And also consumers are not spending money because... oh yes the tariffs! And anyway, there is a predatory car loan bubble that is probably about to burst. Yay.
Meanwhile, in Trump's BBB, health care costs are about to go up/have gone up already. Even if you don't have Medicare, your hospital relies on Medicare money to supplement spending and to keep costs down. Without Medicare, everyone's costs go up.
So yeah, people will be spending less on "extras" and putting their money toward essentials only: food, rent, and healthcare. And that means (say it again) less money going back into the economy.
Which, as a reminder, means cut hours, cut staff, cut pay, fewer benefits, less business expansion, less investment (although the Fed tried to help this with lowering rates), less innovation, and a situation one might call a recession.
Also, this is affecting people around the world. It's that bad.
One might also call it a recession leaning heavily toward a depression.
One might also call it stagflation, or stagflation-adjacent. Stagflation means persistent high inflation along with slow growth, low employment, and stagnant demand (people ain't buying.) Inflation basically means (I am explaining this badly but simply) that cash does not go as far as it used to.
That is alllll on Trump and his enablers. All of it. And I didn't even get into the particulars or mention how fascist nations always have shit economies because stifling innovation stifles a country.
So what can you do? As a regular person with probably not all that much money because, well, you're on tumblr.
Well, as I have (politely I hope) screaming for a while now: get your finances in order. First and foremost, clean your financial house.
Use a budget app or budget on a piece of paper, but look at your finances and work to: spend less, save more, and get out of debt.
There are ways to do this even if you don't make a lot of money. It might take a while, but you can do it.
You will also want an emergency fund--3-6 months of expenses, tucked away and not spent except for actual emergencies.
Right now, interests rates are low. This is done partly to encourage people to spend more instead of saving--they want that money back in the economy. But if you spend, spend wisely. Spend at local businesses and at businesses that align with your values. That's who you want to help keep afloat. Bezos will be fine without you.
a lot of jobs suck, but maybe don't leave your job right now unless you have another one lined up.
remember that gig economy side jobs will also make less now, because someone struggling to make ends meet is not gonna spend that $10 delivery free for groceries.
is your bank a good bank? if you have a savings account (get a savings account), does it have a good APY? Most don't. Look for the highest you can find.
where can you save money? sometimes, some people don't need a precise budget but they do need to see where the majority of their "extra" money goes so they know where to make cuts if necessary.
is your credit card the best card for you? remember when looking for a good card that the credit card companies are not your friends. this is a business relationship and they want your money.
STOP USING BUY NOW PAY LATER. I will scream about this forever. Not politely.
if overdraft fees are a problem for you, you need to a) budget and learn how to stick to it and b) go to your bank and remove the ability to overdraw your account. you can do that. it means your card will be declined in public (embarrassing) but you get no fee.
only pay a minimum payment on a debt if you absolutely have to. otherwise, pay more than the minimum. if you can, pay your credit card off every single month.
That is the basics to protect yourself. But you might need some specific guidance and help. Understandable. Money is math and it is also stress for most of us.
Places to go to learn some basics:
The Financial Diet on Youtube has set up a series on how to budget depending on your personality/anxieties about money. Different budget styles for different people.
Your Rich BFF also has a youtube channel, it's less for beginner's but she does explain a lot of financial terminology in a fun way. And she interviews a lot of people, some of whom actually did start out with nothing and now have nest eggs and things.
The Broke Millennial is a book series to explain the basics of personal finance to.... broke millennials. The advice in the initial book is from 2016... and what a near-decade it's been oof, so some of it might not be perfectly applicable. But she also explains how to use a credit card or find the right credit card for your needs. What to look for in a bank or credit union. Different budgeting styles and how to find what works for you. She will lay it all out for you, and you can find the books -and audiobooks- through libraries.
You can also consult with a financial advisor if you can afford one, or if your bank or credit union offers free financial advice services.
If you are someone who usually ends up paying the IRS at tax time, and you can afford one, I would also recommend using an accountant for your taxes instead of a tax prep service. Do not give this government more than you have to. Some accountants will offer one free consultation. Look into it.
I said this before, but if you want to survive Trump's economy, you have to use whatever tools are at your disposal. And the free ones, like Youtube videos and library audiobooks, are my favorite kind.
Yes, this is work. Money on this level is not passive income. It's monitor-it-constantly-and-get-the-most-out-of-it income.
I know it's heartstopping to look at a bank account that is less than ideal. I know. But you gotta do it. Start small if you have to, but do it. And be prepared because things are going to get worse before they get better unless a miracle happens and the Supreme Court finds Trump's tariffs illegal.
