Trump and Bessent’s Economic Plan: What It Means for Everyday Americans

Trump and Bessent’s Economic Plan: What It Means for Everyday Americans 

Here's an explainer about what's going on with tariffs, US trillions of dollars in debt, and the stock and job markets.

If you’ve been watching the news, stock market, or your wallet,  you might’ve noticed things are shaking up with the U.S. economy. President Donald Trump and his Treasury Secretary Scott Bessent are tackling a huge issue: the country’s $36 trillion debt. Their plan? Lower interest rates, slap tariffs on imports, and cut government jobs with DOGE. But there’s more to it, and it affects everyday people. 

Lowering Interest Rates: Keeping Debt in Check

Picture this: you owe $500 on a credit card, and the interest rate means you’re paying an extra $50 a year. If that rate drops, you might only owe $25 extra—easier to manage, right? The U.S. government’s in a similar boat with its $36 trillion debt.

Last year, we paid $881 billion just in interest, more than we spend on the military. Trump and Bessent want to lower those rates to make the debt less of a burden. Bessent’s aim is to focus on long-term rates—like the cost of a 10-year government loan. By making these cheaper, they’re hoping to refinance the debt, kind of like switching to a lower-rate mortgage to save cash. If it works, it could free up money for other things such as roads  and schools.

Tariffs: Cash and Jobs, But at a Cost

These are taxes on goods we buy from other countries. Think clothes from China or car parts from Mexico. Trump’s pumped about them, calling tariffs “beautiful.” He’s added a 10% tax on all imports since January 2025, with bigger ones (up to 60%) on places like China. The goal? Bring in cash for the government and push companies to make stuff here, creating American jobs.

Here’s the flip side: tariffs can make things pricier. Your next pair of sneakers or TV might cost more. People are worried it could spark a “trade war” as other countries tax our stuff back. This harms farmers or companies like Ford that sell overseas. It’s a trade-off: more jobs here, but maybe emptier wallets.

DOGE: Cutting Government Jobs and Costs

Then there’s DOGE—the Department of Government Efficiency, led by Elon Musk. It’s all about shrinking the government to save money. In March, they cut about 275,240 jobs—mostly federal workers like IRS agents or folks at Veterans Affairs. That’s a big chunk of the 2.3 million federal employees who cost $271 billion a year. Less workers, less spending, less debt, that’s the idea.

What Else Is Happening?

Trump’s pushing tax cuts, especially for businesses, to get them hiring and growing. Sounds great—more jobs at places like Walmart or Amazon—but it also means less tax money coming in, so tariffs and DOGE cuts have to pick up the slack. They’re also keeping Social Security and Medicare safe for now—those are the big programs for retirees—while slashing elsewhere, like health agencies or train services.

How’s This Hit Home?

If this works, lower interest rates could mean cheaper loans for you—like a better car loan rate. More factories here might mean jobs at the local plant. And a leaner government could save taxpayer dollars long-term.

However, prices might climb—think groceries or gas—and those 275,000 layoffs could mean more folks competing for jobs. People are stressing about a recession, with stocks dropping and some predicting tough times ahead. Bessent calls it a “rough patch” before things get better, but it’s a gamble.