Posted on 04/06/2025 6:23:13 AM PDT by lovingliberty1965
I cannot take credit for the following but I saw this comment posted on another forum and thought I would post it here since it describes the best in the smallest amount of space why the tariffs work and how they work:
"Trump is trying to crash the stock market at least 20%, causing a flight into treasuries, this will cause the fed to slash interest rates so he can refinance the debt to near 0% and cause a deflationary spiral which will lower the cost of everything.
He also intends to use tariffs as an incentive for companies to build in the US to avoid having to pay the tarriffs. The Tariffs and the resulting global trade war will also force American Farmers to sell more of their goods in the US (due to retaliatory trade measures by other countries) which will directly lower the price of groceries in the US by making it unprofitable for farmers to export, more supply in the states while demand remains static or near static for the same daily staples such as bacon, eggs, beef, pork, rice, beans, etc. the prices will drop - This is also why eggs are cheaper now than they were under Joe Biden.
More than 94% of all stock is owned by just 8% of the US population - Trump is literally taking money from the rich and giving it to the poor.
This is why Trump is playing a game of Hokey Pokey with Tariffs. One day he has 25% Tariffs on Mexico and the next he doesn't. This is to cause extreme volatility in the markets and a desperate need and demand to flee towards treasury bonds which are much more stable but offer much lower potential return."
The article is idiotic and so is your belief in it. It sets up a strawman fallacy and then people like you come along and knock it down.
Trump's tariffs have fluctuated, not because he wants to cause chaos in the markets. That's a Big Media talking point. His tariffs have fluctuated because he uses reward and punishment when he negotiates.
And no, Trump doesn't want to depress the stock market. Trump's ultimate goal is pro big growth which will lead to the stock market soaring back and then soaring upward.
Mark Levin's summary of Trump's plan is right on target. Slash taxes, slash regulations, slash government spending with DOGE, slash the size of government, slash high tariffs on US goods overseas, and augment the funding of the federal government with low baseline tariffs on foreign goods.
I’m afraid you’re right. This sounds like a disaster if this is his plan.
“A deflationary spiral is horrible. It becomes a race to unload assets, crashing prices. People put off purchases anticipating lower prices tomorrow.”
Totally agree. It would be utter misery.
Deflation occurs when people don’t buy stuff and if they don’t companies won’t produce stuff which means they won’t need people to make stuff which means very high unemployment.
If this is his plan, depression here we come.
A Tariff is a Consumption Tax like a Sales Tax.
And it SHOULD offset Income Taxes.
Consumption Taxes have huge advantages over Income Taxes. With Income Tax, businesses and individuals have to give an accounting to the government to justify their spending decisions. Compliance cost is enormous. There is risk of jail if someone like Lois Lerner disagrees with a spending decision. Businesses base business decisions on tax implications instead of on efficiency and productivity.
Now we need to eliminate the tyrannical Income Tax, along with the weaponized IRS.
What a great article! Thanks for posting it.
That’s why a healthy economy needs to manage inflation at the 2-3% PA range. People can handle it, prices move slowly, it’s far easier for businesses to plan, employment grows, there’s no deflationary spiral.
Tariffs are paid by corporations, businesses
Not by individuals ..they are a tax levied on producers bringing their products into foreign markets
I think Trump said, if people think tariffs will raise consumer prices…lets cut the corporate tax rate to compensate
which is complete anathema to the left and its perennial demands to tax corporations. The same maroons out protesting tariffs.
Those were the number that Milton Friedman thought we should shoot for.
It’s 4D chess, meaning whatever you think they are, they’re more complicated than that.
Democrat Underground could use your keen insights....
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First several things are going on - first we're getting ripped off on tariffs. Cambodia charges a 98% tariff on all US goods. That outrageous. We can't afford the trade imbalance that's been happening for decades.
Other countries must lower their tariffs against us - and we need to protect our vital industries. Tariff deals will do both. As far as jobs are concerned we want them in our strategic industries... Large-chip plants, transformers & other grid security infrastructure, weapons etc... And if we became competitive in some third world industry either Americans can do the jobs or Elon can create robots to do the jobs.
In the long run we can't lose with what Trump's doing. Remember when Trump took on NATO to 'pay their share'? And all the 'looking down their noses' crap we heard? Well this is similar. NATO's stepped up to the plate recently because we've told them we're NOT going to carry their share of the load anymore. NOW they 'get it'... The same will happen with tariffs.
We can't afford to let corrupt democrats make 'trade deals' that only benefit the corrupt 'liberal elite trader' and that hurts American citizens. Being ripped off is over.
And yeah - in the long run what's Trump's doing will help everyday citizens and hurt corrupt 'elites'. Which is why they're screaming and hiring shills and goons to try to stop Trump.
This could get interesting as she fingers others doing the same...
Bump
Oh no, God forbid poor people actually have lower prices so they can survive!
How much do you want to bet on that?
Put up or shut up.
It is precisely what he has done. If anyone believed that in the LONG RUN this was a good idea, then that would be improving the value of equities. If you’re so sure it’s a great idea, buy stocks on the open this morning.
Many are buying stocks. The market is skyrocketing right now.
You are being way to hard on both Bush 1 and 2.
Possibly your computer monitor is upside down?
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