The very first week of President Donald Trump’s administration has been nothing if not busy. Trump signed four executive orders and a slew of memoranda, covering a range of topics from the Dakota Access Pipeline (DAPL) to the Trans-Pacific Partnership and yes, that famous border wall.
A TIME Magazine reporter says that two of the lesser-known executive actions are “putting the screws to Millennials.” Is TIME right on the money when they predict future financial chaos, or is this new administration helping us dig ourselves out of a financial hole?
On Inauguration Day, President Trump issued an executive action that overturned an Obama Administration policy that cuts the Federal Housing Administration’s interest rate for first-time home buyers by half a percentage point.
The idea of the rate cut was to make it just a tiny bit (.5%) easier for people just getting settled in life to pay their mortgages. However, the rate cut would have also decreased the FHA’s ability to deal with defaults. When too many people default and a lender doesn’t have the money to absorb those losses, well, it’s #throwbackthursday to the 2008 financial crisis.
TIME might think we’re just now being punished by Trumpism, but it’d be impossible to notice – since the Obama rate cut was only announced in his last week in office, and was not to be implemented until January 27th. Trump simply prevented a planned change from taking place. For first time home buyers (imagine being a millennial with the finances to buy a house!), there will be no difference in policy.
The second executive action TIME sees as a threat to millennials is the order to begin rolling back Obamacare. The author mentions that young people can stay on their parents’ insurance plan until their 26th birthday and that Obamacare requires all insurance plans to provide birth control without a co-pay. Both of those things are true – but what’s not true is that Trump’s executive order says anything about those two parts of the law.
The executive order simply directed the heads of agencies and departments to alleviate the tax burden on people to the extent that the powers of their offices allow.
Obamacare caused insurance premiums to increase while forcing us to pay them (lest we pay a penalty for being uninsured). Could the Obamacare repeal and replacement process hurt us? Sure – but only if the Affordable Care Act is replaced with something worse.
Those two executive actions do not spell doom and gloom for our bank accounts. Though other actions are highly financially questionable (the border wall) and ethically questionable (banning immigrants from specific countries – countries the U.S. has been recently bombing), others are positive. Thanks to the federal hiring freeze and regulatory freeze, government is smaller and less bureaucratic today than it was one week ago.
President Trump won only 37% of the millennial vote in November. More of us become eligible to vote every day. This new President has his work cut out for him: Win us over by letting us be independent from government interference.