The recent presidential election brought about a situation where one party controls two of the three branches of government, (and will soon control the third). This is a rare situation in politics – and one that can produce big changes in government policy. How will these changes impact your finances?
Bankrate recently polled Americans to find out what they thought.
When Americans were asked whether the election results would produce a positive or negative impact on their personal finances, 28 percent said positive, 26 percent said negative, and 39 percent said it made no difference either way.
Among those feeling optimistic, taxes were the primary motivator with 35% of those expecting a positive impact reasoning that they’ll pay less in taxes.
Other reasons people felt there would be a positive impact were increases in income (24%), increasing value of investments (18%), and decreasing expenses (9%). 4% of the respondents cited all of the above.
Americans who are expecting a negative personal financial impact from the upcoming administration were expecting to pay higher taxes (28%), higher expenses (25%), decreasing income (20%), and decreasing value of investments (11%). 9% listed all of the above.
Baby Boomers, especially younger Boomers between ages 52-61, were most likely to foresee a positive impact on their finances – with rising income and reduced taxes most commonly cited.
Millennials, Generation X, and the Silent Generation most consistently said the election wouldn’t make a difference either way.
As one might expect, 58% of Republicans expecting positive effects compared to just 9% for Democrats (it was 27% for Independents). 45% of Democrats expect negative effects compared to just 7% for Republicans (it was 22% for Independents).