The inequality gap in America is widening at an alarming rate. At the same time, the federal deficit is ballooning. Millions of Americans are living paycheck to paycheck. In contrast, billionaires continue to grow their fortunes. In the middle of this crisis, President Donald Trump has re-emerged as a key political figure. However, can Trump actually stop this growing inequality and deficit?

Let’s look at the facts.

During Trump’s first term, he signed the Tax Cuts and Jobs Act (TCJA) into law in 2017. While the bill promised to boost economic growth and benefit the middle class, many economists argue that the primary beneficiaries were wealthy individuals and large corporations. Corporate tax rates were slashed, and many wealthy Americans saw their taxes lowered. Meanwhile, the national debt soared by nearly $7.8 trillion over his four-year term.

Supporters argue that Trump’s policies spurred growth and job creation before the COVID-19 pandemic hit. Critics point out that the benefits were uneven. Real wages for working-class Americans barely budged, while the rich got richer. Inequality didn’t shrink—it expanded.

Donald Trump, as the 47th president, has suggested eliminating taxes on tips and cutting Social Security taxes. These measures are to increase disposable income for working-class Americans and retirees. These tax cuts may provide short-term relief. But they also raise concerns about long-term fiscal sustainability. For instance, eliminating taxes on Social Security benefits could increase the program’s insolvency. This would potentially lead to reduced benefits in the future.

First, eliminating taxes on tips might help service workers in the short term, but it would also reduce state and federal revenues. Those revenues are used to fund public services like schools, healthcare, transportation, and safety nets. Without them, inequality could worsen, especially in underserved communities.

Second, cutting Social Security taxes could threaten the long-term stability of one of America’s most important retirement programs. Millions of seniors rely on Social Security to survive. Without enough funding, future generations may receive reduced benefits, or none at all.

To address the federal deficit, President Trump has proposed a budget plan. It is to cut domestic discretionary spending by $163 billion and increase military expenditures to over $1 trillion. The plan includes reductions in funding for various programs, such as an $18 billion cut to the National Institutes of Health. While promising, these cuts could affect essential public services and exacerbate social disparities.

Despite these initiatives, public approval of President Trump’s economic policies has been mixed. On one hand, Trump appeals to Americans who feel left behind. His tough rhetoric on trade, immigration, and government waste resonates with many voters who believe the system is broken. He has shown a willingness to challenge the status quo and fight establishment politics.

Alternatively, his economic policies favored the wealthy and increased the national debt. Beyond tax breaks, he would have to suggest significant reforms if he were to remain president. He must make investments in areas that directly affect working Americans, such as healthcare, education, and infrastructure. It also means holding corporations and the wealthy accountable through fair tax contributions. It would also require reducing wasteful spending while increasing investments in people. Plus, creating pathways to education, housing, and healthcare is essential.

Whether Trump can deliver on these complex issues or not, we, as Americans, will have to decide if his leadership is the right path forward or if a different direction is needed.

For more information and clarity, we recommend reading Private Affluence and Public Squalor. As the role of government in the economic life of the nation has become increasingly diminished, this book will help you to get a clear picture of what needs to be done. Here is a link to purchase: https://www.amazon.com/dp/B0CHL9N39B.