The re-election of Trump is the first step in a longer effort to strengthen the economy and solidify America’s fiscal foundation. The Trump team, now armed with experience they lacked in 2016, appears prepared to make swift progress.
With so many challenges to address, what should take priority? Here are my top five economic recommendations for Trump’s first 100 days.
Secure the border and begin mass deportations
The influx of illegal entrants to the U.S. is not just a security or social policy issue; it’s an economic one. These individuals impose significant costs on American taxpayers. In 2023 alone, the Federation for American Immigration Reform estimated this impact to be $150 billion.
Mass illegal immigration has strained communities nationwide, taken jobs from American citizens, and suppressed wages and opportunities. In 2022, an estimated 8.3 million people participated in the U.S. workforce illegally, adding further strain to taxpayer-funded services, including health care.
Strategic spending cuts that don’t hinder growth are challenging but essential.
The federal government must declare a state of emergency to take immediate, decisive action to secure the border and prevent asylum rule abuse. Processing systems should prioritize identifying people who have committed additional crimes, aside from entering the country illegally, and those who arrived within the past five years. This response needs to be swift and on a large scale.
This approach will stabilize economic signals, prevent taxpayer money from supporting undocumented immigrants long-term, and create more job opportunities for U.S. citizens. Additionally, encouraging more disenfranchised working-age individuals to enter the job market would strengthen the economy.
In the long term, limiting immigration to attract and reward skilled workers who share American values and want to contribute to the economy will benefit all Americans.
Return to a low-regulation environment
The Biden administration has burdened productive businesses with excessive regulations, costing small businesses alone an estimated $1.7 trillion. With over 33 million small businesses in the U.S., freeing them to grow and thrive, rather than struggle, would strengthen the economy.
One key area to address is flexible work. Reversing the Department of Labor’s ruling, which overturned Trump’s support for independent contractor and gig work, would benefit millions of contractors and gig workers who lost jobs due to the Biden-Harris policies. This change would also support small businesses that rely on contractors.
Additionally, eliminating the FinCEN requirement for small businesses to register (the CTA BOI rule) would relieve a major concern, as many small businesses are closing or avoiding start-up due to this government overreach.
Reducing housing regulations, including collaborating with states to lower construction costs and encourage more building, would help stabilize the housing market and unleash broad economic growth.
Get tax policy settled quickly
Businesses are relieved to avoid the tax increases proposed by Harris, but they still need clarity on future policy.
Collaborating with Congress to outline which parts of the Tax Cuts and Jobs Act of 2017 will be extended, what new cuts may be introduced, and other tax proposals (such as exempting tips from taxes) will boost business confidence. Clear incentives drive growth, and a well-defined, low-tax path will encourage businesses to invest and pursue growth.
Restore commonsense energy policy
Affordable, abundant energy ensures a secure future and supports the technological advancements we pursue. AI, in particular, will demand significant energy, making a stable, reliable supply essential. We must make a point of enabling companies to invest in traditional energy, nuclear power, and viable green initiatives. These investments take time to yield results, and the current pipeline of projects is dwindling.
Bring on the DOGE!
Redirecting funds to the more efficient private sector, rather than wasting them at high cost in the government sector, is key. Establishing a government efficiency commission — or, as Elon Musk half-jokingly suggests, a “Department of Government Efficiency” — with strategic thinkers like Musk and Ron Paul would be a critical step.
Strategic spending cuts that don’t hinder growth are challenging but essential. Achieving this balance will reduce wasteful interest expenses, stabilize our debt-to-GDP ratio, and foster private sector growth that benefits all Americans.
The American dream needs to be restored, and it won’t be easy, so the Trump team needs to roll up their sleeves and get at it right away.