Posted on 03/21/2025 7:41:57 AM PDT by Miami Rebel
The best case is that our trade partners capitulate before the new tariffs take effect.
the tariffs kick in April 2nd.
All taxes are inflationary. Also, all spending by government is inflationary.
bflr
The tariffs that have been in place against the USA for years didn’t cause inflation?
Small-minded economist. Not unusual.
Ignore theoreticians. Believe inn actual results. Trump-45 imposed tariffs in his term. Inflation was at record low.
Isn't it strange how EVERY OTHER NATION ON EARTH can handle the economic impacts of their many many tariffs, but the wealthiest and strongest economy on earth cannot?
Hmm...
Guess not since their tariffs are so high, few USA products are purchased, benefiting in-country producers.
This economist seems to think that consumer behavior in the USA is such that USA-produced products won’t be purchased, regardless of imported products’ prices?
The goal of Trump's tariffs are to bring back off shored manufacturing.
Trump succeeded in turning the country around using tariffs in his first term and the country would be in much better shape if Biden had not been elected and destroyed all the progress Trump had made.
Tariffs may be required to meet defense and foreign policy goals, but Trump needs to be honest about the real economc harm they can cause for Americans:
1. They’ll be higher prices for domestic consumers or produces using foreign inputs. That’s their purpose and effect.
2. When we import, foreigners don’t just stuff their dollar payments into their closets. If we don’t import, foreigners won’t earn the dollars they use either (a) to import from the USA or (b) to invest in the USA. (Holding dollars in banks is an investment.) This means fewer physical ivestments or higher interest rates.
3. Foreign governments will retaliate, leading to job losses and reduced profits for Americans.
It was low throughout the first term, but it was actually lowered in 2015.
Milton Friedman’s well known dictum is that inflation is “everywhere and always a monetary phenomenon”.
That’s a fancy way of saying it’s caused by increases in the quantity of dollars.
Tariffs, like taxes, don’t increase the money supply. They can increase the price of the affected products. But they do not cause the generalized loss of buying power that inflation does to the dollar.
It seems like grocery prices are coming down a little too.
Empirically, that’s just not so. High deficits did not produce high inflation in President Trump’s first term.
As regards bringing back manufacturing, what industries do you see as most likely to repatriate jobs?
Milton Friedman believed that economics was only about economics but economic policy can effect national security. People like him caused China become a global menace for cheaper tennis shoes and steel.
Oh, c’mon, you can’t have actually expected a gov’mt official to admit the obvious truth about anything?
Aside that, only printing more $$ bills is inflationary. Doing something over here that causes a price increase will have a compensatory effect over there — that is how a free market works. Price inflation is only for long term if the demand rises.
“big drivers of inflation are massive government deficit spending”
Especially when the money is printed, as Hussein used to say, “quantitative easing.”
Trumps goal is not to have tariffs; it’s to take tariffs out of both sides of the equation. He will point out the pluses to our imposing tariffs in order to demonstrate willingness to go that way if the other side chooses to keep their punitive tariffs, but his intent is to make them see the value of tariff-free trade. It has worked well for him in the past. These people just don’t get that he is the best publicly-known negotiator there is. They just don’t learn.
If tariffs are inflationary to those who impose them why doesn’t China have inflation? 🤔
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