Before the terrorist attacks in my home town of New Orleans and before the catastrophic fires in California, I wanted to publish a paper about how the re-elected President Trump could declare the entire USA as a disaster area due to the inflation, failing economy, disasters, energy prices, food insecurity, hurricanes, wars, and floods.

However, several people said that idea was a bit too intense or edgy. So, I decided on another paper idea that would  utilize my lawyer, banking and tax law writing skills to specifically focus on how President Trump and the federal government could help the citizens of the USA with an economic revival and renaissance toward a new “Golden Age”.

In a second term, the re-elected President Donald Trump has a unique opportunity to set a transformative precedent for America’s economic recovery. By declaring the nation a special Economic Empowerment Zone on day one of his presidency, Trump could utilize the financial powers of the federal government, the EDA, Dept of Treasury, Opportunity Zones, FEMA and the Small Business Administration (SBA) to help Americans economically injured by the relentless forces of inflation, war, crime, fires, floods, immigration, and the ongoing energy policy crisis.

With strategic interventions, the President can lead the way toward an economic revival that provides relief, stimulates growth, boosts education, and directly addresses the financial burdens of working Americans. 

The Economic Development Administration (EDA), which is part of the U.S. Department of Commerce, is responsible for overseeing a variety of economic development programs. The administration of Opportunity Zones falls under the U.S. Department of the Treasury. The Opportunity Zones program, created by the Tax Cuts and Jobs Act of 2017, is designed to encourage investment in economically distressed areas.

Executive Action for National Empowerment Zone Declaration: The President could use his executive powers to declare a national economic emergency and implement an empowerment-style policy.

This could involve declaring a nationwide Opportunity Zone to address broad economic challenges, particularly in areas suffering from the impacts of inflation, unemployment, crime, unaffordable health care, education failures, and economic dislocation. By invoking special powers, the President could take action similar to the creation of a national disaster zone, but with a focus on long-term economic recovery and empowerment.

The President could even prioritize creating opportunities for economic growth and job creation in underdeveloped or economically struggling areas in the heartland of the USA. This would include tax benefits, worker incentives, infrastructure investment, deregulation to attract businesses, and job training programs to encourage employment and entrepreneurship.  

A New Path to Economic Recovery: Empowering Working Americans

The unprecedented challenges of recent years have left millions of Americans struggling with rising costs of living, escalating debt, poor schools, violent crime, and the consequences of geopolitical instability.

From inflation, rent prices, unfettered immigration hurting jobs for black families and women, crime, to energy price hikes, many people are facing severe financial pressures. It’s time for the President to tap into the financial powers of the EDA, FEMA and the SBA to address these social and economic injuries with aggressive, yet positive, economic solutions.

Declaring empowerment zones and disaster areas would allow the President to unlock a broad range of financial resources to help American families and businesses. With the right measures, such a declaration would not only mitigate the immediate effects of the current crises but also pave the way for long-term economic recovery and stability. Keep in mind, the entire USA was already a total disaster area under COVID.

Leveraging EDA, FEMA, and SBA to Alleviate Financial Burdens

In times of national disaster, the Economic Development Administration (EDA), FEMA, and the Small Business Administration (SBA) play critical roles in providing immediate relief and long-term recovery support.

The EDA has the power to administer grants and assist with infrastructure and economic recovery, particularly in distressed areas, and can be leveraged to support regions hardest hit by economic challenges like inflation, rising crime, and energy crises. By mobilizing EDA’s resources, the administration can foster economic revitalization and job creation, helping communities regain stability.

FEMA also plays a pivotal role by providing immediate disaster relief funds, but its scope could be expanded to include financial relief for individuals and businesses impacted by inflation, rising energy costs, and crime.

This could involve tax rebates, loan assistance, and additional forms of financial support to mitigate the effects of these crises. Tax benefits for casualty and theft losses would be vital to this national recovery.

Meanwhile, the SBA, which traditionally supports businesses affected by disasters, could offer low-interest loans and grants not only to businesses but also to individuals facing financial instability.

These programs would help Americans offset losses caused by inflation, crime-related damages, and increased energy expenses. By creatively combining the powers of the EDA, FEMA, and SBA, the President could offer a lifeline to families and businesses, alleviating financial burdens and promoting economic recovery across the nation.

Reducing the Burden on Personal Debt: Leveraging Presidential Powers Over Interest Rates

In addition to addressing the immediate needs of citizens and businesses, a new President could take decisive actions to directly alleviate the burden of personal debt, especially given the power wielded over key areas like auto loans and student loans. While the President does not directly control interest rates, there are significant tools and strategies available to influence rates and provide relief to struggling Americans.

For student loans, under the Student Loan Forgiveness Act, the President has the authority to regulate repayment plans, adjust interest rates for federal loans, and implement changes to income-driven repayment programs.

The President can push for more favorable loan terms, including reducing interest rates for federal student loans or offering more forgiveness options for borrowers facing extreme financial hardship. In essence, Biden Harris overcharged 40 million families and students for loans for 3-4 years costing working families an extra $200-400 Billion dollars over the last 4 years.

Going Forward With Education

For educating our youth that can’t afford it, the new American Academy created by Trump could provide free college education online to those in need including the: disabled, those in rural America, and those caring for elderly or children who cant ‘commute to classes.

For auto loans, while the President doesn’t have direct control over private loan rates, they could influence this market through regulatory agencies such as the Consumer Financial Protection Bureau (CFPB) or work with Congress to implement policies that limit excessive interest rates charged by lenders.

Additionally, through collaboration with the Federal Reserve, the President can encourage or press for policies that reduce overall borrowing costs in the economy, indirectly affecting auto loan rates. Generally speaking, it is just wrong for the government to support charging 10-15% auto loan rates on young military soldiers and workers who need a car to get to work.

Credit cards and adjustable-rate mortgages fall under similar oversight, with the President able to push for reforms through the CFPB to reduce predatory lending practices, impose caps on interest rates, and offer consumers more protection from volatile rate fluctuations.

Through targeted interventions like interest rate reductions on federal student loans and auto loans, alongside tax rebates and deductions for workers burdened by inflated interest rates, the President could provide much-needed relief. These actions would help individuals reduce debt levels, regain financial stability, and reenter the consumer economy, driving long-term economic recovery.

Expanding Tax Relief for Economic Relief

Under a new President with a friendly Congress, there are numerous tax provisions that could be leveraged to provide immediate financial relief for individuals, workers, and businesses. Americans could be allowed to claim deductions for the extreme costs of living, such as increased rent, utilities, and groceries caused by inflation. These expenses could be categorized as disaster-related losses hurting productivity, reducing taxable income and offering relief to workers, particularly those in high-cost areas.

Additionally, businesses that have faced economic harm due to rising crime and labor shortages could also benefit from expanded tax benefits, helping to offset financial setbacks caused by public policy failures. By framing these challenges as part of an economic catastrophe, the President can give families and businesses a direct path to economic recovery.

A Call for National Financial Resilience: Reforming the System

Declaring the USA economy a federal empowerment zone or an opportunity zone or disaster area would also serve as a statement of accountability. It would force the nation to confront the failures of policy and management that have contributed to the current economic state. These challenges, including rising crime, inflation, and inadequate responses to economic injuries, must be addressed head-on to ensure a robust recovery.

President Trump could take bold steps by pushing for:

• Enhanced Worker Tax Relief Packages: Providing immediate tax breaks and rebates to working-class families, ensuring they have access to more financial resources.
• Interest Rate Reductions and Tax  Forgiveness: Through collaboration with the Federal Reserve and Congress, the President could advocate for lower interest rates on student loans, auto loans, and mortgages, alongside targeted tax forgiveness programs.
• Reforming FEMA: Expanding FEMA’s role to include proactive economic relief, not just disaster response. This would involve collaboration with agencies like the SBA to support both short-term relief and long-term economic rebuilding efforts.
• Tax Free Investment Zones – Much like Dubai or Malta or Singapore, the USA could have some low corporate tax and low LLC Tax zones for new business to invest in the USA where offshore investors  could pay the USA for an LLC or Corporation license each year that allowed banking in the USA.

By taking these steps, President Trump can lead the charge in reshaping America’s economic recovery plan, providing financial relief and fostering long-term growth.

Addressing the Energy Crisis and Creating a Path to Energy Independence

The energy crisis has added an additional layer of financial strain to American households, with rising gas prices and energy bills pushing many families to the brink. A comprehensive disaster response plan could include a focus on energy relief, such as tax rebates for families facing soaring utility costs or subsidies for businesses struggling with high energy prices. Furthermore, the President could prioritize policies that promote energy independence, reducing reliance on foreign sources and stabilizing energy prices in the long term.

Conclusion: Bold Action for a Brighter Economic Future

Declaring the United States a disaster zone is a powerful and positive economic strategy. Through the effective use of the EDA, FEMA and SBA resources, as well as targeted financial measures to address inflation, debt, and the energy crisis, President Trump could provide much-needed relief to millions of Americans.

This declaration would not only offer immediate financial assistance but also lay the foundation for a more resilient and economically competitive America. These ideas also integrate well with President Trump’s Platinum Plan to help minorities and women in small business and entrepreneurship.

By declaring the nation a special Economic Empowerment Zone, the President could provide a clear roadmap for revitalizing the economy, focusing on job creation, investment, and the reduction of financial burdens on individuals and businesses.

However, creating a national economic empowerment zone would require a comprehensive strategy, including executive orders, legislative action, and the effective use of federal agencies to support these economic goals. It’s a bold, forward-thinking approach that could align economic growth with social equity and long-term prosperity for all Americans.

Remember, the U.S. President does have the authority to declare a federal disaster under the Robert T. Stafford Disaster Relief and Emergency Assistance Act. This declaration allows for special relief measures, including tax relief for losses and thefts resulting from the disaster.

By thinking outside the traditional box of economic recovery, President Trump could establish a new model for economic recovery and disaster relief—one that addresses both the social and economic injuries inflicted upon the American people by the policies of the past. This bold approach has the potential to reshape the nation’s economic future and put America back on a path toward prosperity and financial security.

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Commissioner George Mentz JD MBA CILS CWM® is the first in the USA to rank as a Top 50 Influencer & Thought Leader in: Management, PM, HR, FinTech, Wealth Management, and B2B according to Onalytica.com and Thinkers360.com. George Mentz JD MBA CILS is a CWM Chartered Wealth Manager ®, global speaker - educator, tax-economist, international lawyer and CEO of the GAFM Global Academy of Finance & Management ®. The GAFM is a EU accredited graduate body that trains and certifies professionals in 150+ nations under standards of the: US Dept of Education, ACBSP, ISO 21001, ISO 991, ISO 29993, QAHE, ECLBS, and ISO 29990 standards. Mentz is also an award-winning author and award winning graduate law professor of wealth management of one of the top 30 ranked law schools in the USA.Mentzenborg is just a term of art to describe the theory and process by George Mentz JD MBA ChE. CWM is for Chartered Wealth Manager ® and ChE Chartered Economist ® is a credential for economics professionals.