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Grant Cardone: 4 Reasons a Trump Victory Would Improve Americans’ Finances
Grant Cardone, a private equity fund manager and real estate investorbelieves that financial education is essential for Americans to build wealth. That’s why Cardone sent a proposal to the Trump campaign to implement a federal program, Financial Freedom for All, that would teach all Americans the basics of finance.
“I think Donald Trump would want this conversation to say, ‘Let’s educate Americans on how to do with their money what wealthy, successful people and investors do with their money,’” Cardone told GOBankingRates.
In addition to making financial education more accessible, Cardone believes there are some other important policy changes Trump would implement that would improve Americans’ finances.
Also see the economic health of each state when Trump was president.
Low interest rates
Trump has talked about wanting to cut taxes, which would not only mean more money in Americans’ pockets but could also have positive effects.
“He would cut taxes for all earners, and that means more money to spend and improve GDP,” Cardone said. “He would also introduce or extend tax incentives like accelerated depreciation for investments in large purchases, equipment, homes and businesses, which encourages investors to invest money, not take it off the table.”
More jobs
With lower taxes and more tax incentives, more companies would be able to hire more domestic employees.
“Anytime you provide tax incentives, you’re going to encourage investment,” Cardone said. “That’s the love language of an entrepreneur: lower taxes and greater incentives for me to take risks.”
Lower interest rates
High interest rates have made it more expensive for Americans to take out mortgages, car loans and other forms of debt. Cardone believes a Trump presidency would mean a long-awaited drop in interest rates.
“Trump is going to hammer the Fed for lower rates,” Cardone said. “If he doesn’t get his way, he’s going to try to collapse the Fed and make it part of his executive office. I think it’s not a bad idea for the president to control a country’s interest rates, because we can’t be competitive right now. Japan has a mortgage rate of 2.5%. Ours is 7.5%.”
Buying a house would be more affordable
If interest rates are lowered, it will become more affordable for Americans to take out a mortgage and buy a home.
Cardone said: “Trump would pressure the Fed to lower rates and make them competitive again so that people could actually afford a mortgage, which would be below 4% or 4.5% so that a mortgage would be competitive with a rent.”
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