I occasionally remind myself that I have a degree in Economics, though it’s rarely in use. I went to Fisk University not knowing what I would major in. One of the Basic College courses I took was Econ 101. I decided to Major in Economics after taking that course, not because I found it fascinating, but because I found it easy. My concern at the time was staying eligible to play basketball, with the classwork secondary.
The same supply-and-demand graph was on the board on the first day of class and the last, except that at the end of the year, there were also S2 and D2 lines. It was uncomplicated because we addressed changes to the economic system while assuming all other factors remained the same. Most concepts in the introductory course were easy to comprehend. One I remember well is opportunity cost, which is the thing(s) you give up as a result of your decisions.
Entire populations of countries incur opportunity costs as a result of the leaders they choose and the policies they implement. On a national scale, when an administration makes great changes, the opportunity cost is great. For every area an administration decides to concentrate on, it means less is being done in other areas. During the current Trump administration, the opportunity cost is high and affecting an increasing number of Americans, though some are exempt. The opportunity cost is rarely discussed, even as rising healthcare costs resulting from decisions made elsewhere are coming to light. Here are multiple examples of the opportunity costs faced by various groups under Trump's policies, which serve a powerful few at the expense of the many.
Diversity, Equity, and Inclusion (DEI) Policies
One of the most visible shifts has been in Diversity, Equity, and Inclusion (DEI). The Trump administration has repeatedly sought to roll back DEI initiatives in federal agencies, universities, and corporations. Trump has blackmailed major colleges and universities to the tune of hundreds of millions to ensure compliance. Most recently, Northwestern University agreed to pay the Trump administration $75 million, following in the footsteps of Harvard, Penn, Columbia, Brown, Cornell, and the University of Virginia. The immediate impact is that programs designed to expand access for underrepresented groups have been defunded or restricted.
By cutting DEI programs, the administration saves money in the short term and appeases certain constituencies (you know which ones). But the long-term cost is the loss of innovation, talent, and trust. Companies and universities that once recruited broadly now risk narrowing their pipelines. Studies consistently show that diverse teams outperform homogeneous ones. The opportunity cost of sidelining DEI is not just moral — it’s measurable in lost productivity, creativity, and competitiveness.
For marginalized communities, the opportunity cost is stark: fewer scholarships, fewer mentorships, fewer pathways into leadership. For the nation, the cost is a diminished ability to harness the full potential of its population.
Immigration and Refugee Policies
Immigration policy is another arena where opportunity cost is glaring. The Trump administration’s restrictive stance on immigration and refugee resettlement has reshaped the labor market and America’s global image. Industries like agriculture, hospitality, and healthcare rely heavily on immigrant labor. Restrictive policies reduce the workforce, leading to higher consumer costs and slower business growth.
Cuts to refugee admissions mean fewer families find safety in the U.S. The opportunity cost here is humanitarian — lives left in limbo — but also economic. Refugees historically contribute to local economies, start businesses, and revitalize communities. America’s image as a beacon for immigrants and refugees has been tarnished. The opportunity cost is diplomatic: diminished influence and credibility abroad.
This cost is affecting not only immigrants but also American citizens of the wrong color. The Supreme Court has said that the color of one’s skin is sufficient to stop and question someone about their immigration status. All “Hispanic-looking” people in America should be concerned that they might one day be collected and possibly disappear, which has already happened to American citizens. Investigations show that more than 170 American citizens have been detained or effectively “disappeared” temporarily by ICE and Border Patrol in recent years, sometimes for days at a time, before being released.
The administration frames these policies as protecting American jobs. But the opportunity cost is that many industries now face labor shortages, and communities lose the vitality that immigrants bring.
Layoffs and Cuts to Federal Programs
Cuts to federal programs have been another hallmark of this administration. Whether in healthcare, education, or social services, the opportunity cost is borne by those who rely on these programs most. Reductions in funding for Medicaid and the Affordable Care Act mean millions face higher costs or lose coverage. The opportunity cost is not just individual hardship but systemic strain: hospitals absorb unpaid care, and public health outcomes worsen.
Cuts to federal student aid and public school funding limit access to higher education. The opportunity cost is a generation less prepared for the demands of a modern economy. Programs like food assistance and housing support have been trimmed. The opportunity cost is increased poverty, homelessness, and instability — all of which carry long-term economic consequences.
Layoffs in federal agencies compound the problem. When agencies lose staff, they lose capacity. The opportunity cost is slower response times, weaker oversight, and diminished public trust.
Tariffs and Their Hidden Costs
Tariffs have been one of the administration’s signature economic tools, framed as a way to protect American industries and punish foreign competitors. On the surface, tariffs appear to strengthen domestic producers by raising the cost of imports. But the opportunity cost is borne by consumers and downstream industries.
Tariffs on steel, aluminum, and Chinese goods raised prices for everyday items, from cars to household appliances. Families pay more at the checkout line, effectively absorbing the cost of trade wars. Small and mid‑sized manufacturers that rely on imported parts face higher production costs. Many cannot pass these costs on to consumers, leading to layoffs or closures.
While tariffs may temporarily shield domestic producers, they often provoke retaliatory measures. American farmers, for example, faced steep losses when China imposed counter‑tariffs on soybeans and other crops. The opportunity cost of tariffs is not just higher prices but diminished trust in America’s role as a reliable trading partner. Protectionism may win short‑term political points, but the long‑term cost is a weakened global supply chain and reduced economic resilience.
Rule of Law and the Abuse of Pardon Power
Equally consequential is the erosion of the nation’s belief in the rule of law. The pardon power, granted to the president by the Constitution, was designed as a tool of mercy — a way to correct injustices or temper harsh sentences. Under this administration, however, pardons have often been wielded as political weapons.
High‑profile allies and political supporters have received pardons, while ordinary citizens languish in prison. The opportunity cost is public faith in equal justice. When individuals convicted of corruption or abuse of power are pardoned, it signals that loyalty matters more than legality. The opportunity cost is a weakened deterrent against misconduct.
The rule of law depends on the perception that no one is above it. Abusing the pardon power erodes that foundation, leaving citizens skeptical of whether justice is truly blind. The opportunity cost here is profound: a nation that once prided itself on the impartiality of its legal system risks normalizing impunity. When pardons are used to shield allies rather than correct injustices, the cost is not only institutional credibility but the very belief that laws apply equally to all.
Changpeng “CZ” Zhao, the billionaire founder of Binance, is an example. In 2023, Zhao and Binance pleaded guilty to failing to prevent money laundering and paying a $4 billion fine. Zhao served a short prison sentence.
Reports show Binance promoted and supported Trump family crypto ventures, including the World Liberty Financial token ($WLFI) and a Trump‑affiliated stablecoin called USD1. House Democrats allege the Trump family generated hundreds of millions from token sales and could hold up to $11.6 billion in crypto assets, boosted by Binance’s cooperation.
Trump granted him a presidential pardon in October 2025.
Connecting Economics and Governance
Tariffs and pardons may seem like separate issues — one economic, the other legal. But both illustrate the same principle: opportunity cost. In the pursuit of short‑term political gain, the administration sacrifices long‑term stability.
Tariffs trade consumer affordability and global trust for temporary protectionism. Abusing the pardon power trades institutional integrity for political loyalty. Together, they reveal a pattern: decisions that serve a powerful few at the expense of the many, with costs that compound over time.
Personal Wealth and Public Cost
During the Trump administration, reports consistently documented how the president and his family members increased their personal wealth through business dealings, real estate ventures, and the visibility of their political positions. Hotels, golf courses, and branded properties benefited from increased patronage, while family members leveraged connections to pursue business opportunities. The public bears the opportunity cost of these gains: every moment spent advancing private interests is a moment not spent strengthening public institutions. Moreover, when government decisions appear to overlap with personal enrichment, the cost is measured in diminished trust in democratic governance. Citizens lose faith that policies are made for the common good, and the nation forfeits credibility in holding leaders accountable to the same standards as everyone else.
The Economics of Exemption
It’s important to note that not everyone feels these opportunity costs equally. Certain groups — often wealthier, whiter, and more politically connected — are shielded. Tax cuts and deregulation benefit them directly. For them, the opportunity cost is minimal.
But for the majority, the trade-offs are unavoidable. When tax cuts for the wealthy reduce federal revenue, the opportunity cost is cuts to programs that serve everyone else. When deregulation boosts corporate profits, the opportunity cost is environmental degradation or worker exploitation.
Opportunity Cost as a Lens
Economics teaches us that every choice has a cost. The Trump administration’s choices reveal a pattern: short-term gains for a few, long-term costs for the many.
- DEI rollbacks: Opportunity cost = lost innovation and equity.
- Immigration restrictions: Opportunity cost = labor shortages and diminished global standing.
- Federal cuts and layoffs: Opportunity cost = weaker safety nets and reduced capacity.
- Tariffs and Their Hidden Costs = Higher prices and business failures.
- Rule of Law and the Abuse of Pardon Power = Loss of faith in American jurisprudence.
- Connecting Economics and Governance = Short-term gain sacrifices long-term stability
Opportunity cost is rarely discussed in political debates, but it should be. Every policy choice carries trade-offs. The Trump administration’s policies have consistently prioritized immediate gains for a select few over long-term benefits for the nation.
The opportunity cost is visible in rising healthcare costs, diminished diversity, weakened social programs, and tarnished global reputation. It is borne by workers, students, immigrants, refugees, and families across the country.
Economics taught me that opportunity cost is the thing you give up as a result of your decisions. America is giving up a great deal. The question is whether we will recognize the costs before they become irreversible.
This post originally appeared on Medium and is edited and republished with author's permission. Read more of William Spivey's work on Medium. And if you dig his words, buy the man a coffee.