This story at a glance…

1. Scott Bessent is a hedge-fund manager turned economic advisor.

2. His “3-3-3” plan tackles debt, growth, and energy.

3. He plans to use tariffs to reform global trade.

4. Bessent aims to stabilize America’s economy.

A New Era for U.S. Economic Policy 

Scott Bessent, an experienced hedge-fund manager and economic historian, is set to become the next U.S. Treasury secretary under former President Donald Trump. His career spans decades of high-stakes investment, including his time with George Soros and his own firm, Key Square Capital Management. Known for making bold financial bets that often paid off, Bessent now plans to apply his expertise to U.S. economic policy.

His key focus? Tackling the U.S.'s growing debt and revitalizing economic growth. He aims to address complex global challenges by blending historical insight with modern strategies.

What’s the Plan?
Bessent’s approach revolves around a “3-3-3” strategy:

1. Cutting the Budget Deficit to 3% of GDP by 2028. This means finding ways to spend less or bring in more money, reducing how much the government borrows.

2. Boosting Economic Growth to 3% annually. By cutting red tape and extending tax cuts, Bessent hopes to spur investment, create jobs, and boost tax revenues naturally.

3. Increasing Domestic Energy Production by 3 million barrels (or equivalents) a day. Increasing domestic energy production would lower reliance on foreign oil and potentially reduce energy costs.

He also supports extending tax cuts but proposes balancing them with budget adjustments, like freezing certain types of government spending and revising subsidies for green energy initiatives.

Tariffs as a Tool for Change
Bessent believes tariffs—taxes on imported goods—can be used strategically to protect U.S. industries and encourage fairer trade practices worldwide. He compares this approach to using sanctions, a tool often employed to influence international policy. For instance, Bessent suggests imposing higher tariffs on countries like China while rewarding allies who adopt fair trade practices with lower trade barriers.

Critics argue that tariffs can lead to higher prices for consumers, but Bessent sees them as necessary short-term sacrifices for long-term economic stability and fairness.

How Does This Affect You?
Bessent’s policies could influence daily life in a few key ways:

• Taxes and Income: Making tax cuts permanent and eliminating taxes on tips, overtime pay, and Social Security benefits could leave more money in your pocket.

• Energy Costs: Boosting domestic energy production might stabilize or lower energy prices.

• Everyday Prices: Tariffs could make imported goods more expensive in the short term, but the goal is to strengthen U.S. industries and jobs over time.

While the big-picture strategies may feel distant, their outcomes—like job growth, lower national debt, or changes in energy costs—will directly affect household budgets and economic security.

Reflection
Proverbs 21:5 teaches, “The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty.” As Christians, we are called to manage what God has entrusted to us thoughtfully and responsibly. In our own lives, we can take a page from this playbook by setting goals, making wise choices, and trusting God’s guidance in both personal and community finances.