Breitbart
Researchers at the Federal Reserve Bank of San Francisco examined major tariff changes from 1870 through 2020 across the United States, the United Kingdom, and France. Their conclusion challenges the conventional wisdom that dominated economic policy debates in recent years: when countries raise tariffs, prices actually fall, not rise.
“We find that a tariff hike raises unemployment and lowers inflation,” the authors, Régis Barnichon and Aayush Singh, write in their working paper released this month.”This goes against the predictions of standard models, whereby CPI inflation should go up in response to higher tariffs.” More
I get a kick out of these idiot micro, macro, moron economists. What’s the point of a tariff? Make their product more expensive that ours. Or encourage some biz to to making xyz product here domestically because now it profitable. The second part of that is when tariffs normalize we now have access to their markets. There’s a third component. If what ever foreign bastardos want to continue to sell product here what do they need to do? Lower their price point. So in my view it’s hardly a tax. A Trumps done a very efficient job with them.
@Brad,
I pretty much agree with what you said, but If tariffs are going to be placed there needs to be more consistency, not flip flopping all over the place. Markets operate based on an expected norm, and what business wants to start building a factory when policy might be different in a week?
wonky honky
I think there was an expected period of turmoil while Trump bitch slapped countries like China, and all or Europe who pretty much shut us out of their markets with TARIFFS. The end result will be well worth the minimal amount of pain. But a correction had to be made.
“We find that a tariff hike raises unemployment and lowers inflation,”. They say that like higher unemployment is a good thing. Maybe this is their way of being sarcastic. Anyway, the tariffs are fine.
Succinct and precise. Few words but a direct hit. Well put Brad.
President Trump was right again.
i appreciate the unexpected/unknown. think it does away with much of the monkey business. i.e when china and other countries consistently fail to follow through with their agreement. way too cushy for us to fund. i much prefer other countries taking it in the shorts, we should be last for mistreatment.
The proposed tariffs were part of President Trump’s bargaining process.
Adjusted and modified as new trade agreements in favor for the U.S economy were negotiated.
Could Barry or Cankles or Brandon or Kammy have done it?
I think not.
I think the best part of tariffs is that foreign based companies are being forced to bring manufacturing jobs to the US. It’s happened a lot in the last year…just a few days ago another one announced it will open a manufacturing plant here.
Per Wonky’s statement that future changes, say by a Biden type admin, will be a concern is why we got to have the next admin to continue and/or increase the Trump tariffs. Perhaps Trump will not be able to run in 2028, but it looks like Vance is capable of carrying on.
Barry or Cankles or Brandon or Kammy would just keep bending us over to take it up the arse.
“Could Barry or Cankles or Brandon or Kammy have done it?
I think not.”
Great comment. I’m sure OAC could step right in. The ignorant bitch has no idea how ignorant she is. And that’s a problem. I’m thinking Vance gets it. Rubio, Tulsi, RFK, and Bessent all get it. Probably left out one or two, but that’s our core.
Look at the price of coffee.
The purchaser pays the tariff, not the “victim” of the tariff.
Until in the long term when peeps quit buying the products.
I’m not an economist; micro, macro, mini, or otherwise – but I DO drink coffee (though I may switch to tea).