Fed Study Vindicates Trump Trade Policy: 150 Years of Evidence Shows Tariffs Lower Inflation
Researchers at the Federal Reserve Bank of San Francisco examined major tariff changes from 1870 through 2020 across the United States, United Kingdom, and France. Their conclusion challenges the conventional wisdom that dominated economic policy debates i...
Figures the experts are idiots. They couldbhave figured this out IF they had wanted to hive us a good economy instead of steal from us.
They always have been. My username is intended to reflect disgust of professional experts.
By contrast I really like OB’s “I may be wrong, but I’m not lying.”
they figured it out long ago. somewhere along the way, they decided to do the opposite because f everyone but them
Of course tariffs lower inflation, it’s not money printed by our government.
This study turns decades of economic policy on its head and reveals that the Fed’s interest rate policy tool is a clumsy, blunt instrument that affects the entire economy regardless of intent whereas tariffs are a surgical tool that can target certain overheating industries while leaving others untouched.
The fact that the Fed itself did this study is hilarious! It’s like the emperor’s scientists revealing that the emperor has no clothes. Oops!
To make it easier to remove invasive and / or parasitic species.
When Gary Johnson and other Libertarians were talking about decreasing taxes such as income and increasing consumption taxes, the critique from Keynesians such as Krugman was that consumption taxes hinder aggregate demand which in turn may slow growth and possibly lead to deflation. That critique might be partly true.
Recently there was an anti-Trump troll here commenting on a post about tariffs who said they’re simply passed on to consumers and act just like a consumption tax. I conceded that there is an element of tariffs that act like consumption taxes but that it’s not the whole story and that there is a percentage of the burden picked up by the foreign companies also. The troll never replied to me.
Now this article talks about tariffs affecting aggregate demand and being deflationary, and posturing like it’s a big surprise. Not to some of us who have already put two and two together.
Anyway, tariffs are still superior to direct consumption taxes and far superior to communist back-end taxation such as income tax.
I said the same thing on p/win and they downvoted to me to oblivion without realizing what President Trump is doing with tariffs.
But keep in mind that the President of the USA does not have the power to levy consumption/VAT taxes or any taxes as far as I know as that is the power of Congress as a separate power.
Tarrifs could be passed on as a consumption tax but not always which is why the Supreme court may rule in President Trump's favor that he has the power to use tariffs to protect the US interests.
Isn’t it refreshing to have a president who didn’t need a political career to be successful and who has the balls to try something different?
I think that is a big reason why all those generals came forward and asked President Trump to run. President Trump can run the political game no problem as he was on the opposite side of the equation for a long time. But President Trump amplifies political double speak to the point it becomes comical and exposes career politicians.
Political double speak is designed to maintain the status quo which is inaction which is a choice of action to watch things progressively become worse.
President Trump is very active or pro active because he realizes you can't rely on traditional discourse to solve these problems.
The globalists realize that putting in several poison pills in legislative action are hard to undo once codified into law. They are using the strength/weakness of Democratic Republics as a way to entrench their crimes and fraud. All type of democracies are designed to be slow moving for changes to avoid concentrated power. But that is also a problem if there is corruption because it is harder and more time consuming to root that corruption out when it takes hold in any form of democracy.
Tariffs are only bad when the west does them, when Thailand slaps 100%+ tariff on imported cars that's good, or something.
Clownworld is healing.
Why does unemployment increase though, I would think it would create jobs.
I have the exact same question. I can't understand why unemployment would increase if inflation is decreasing.
Inflation is driven by money supply which drives demand as they are correlated.
Money supply drops which means demand will drop but there is a lag to it because the Fed started tightening a while back but there is a lag time till you feel the full impacts trickle into the economy.
Same reason why a recession is announced a like a year after it has already started.
The Fed cuts rates to avoid deflation because it would lead to larger job losses where disinflation is the slowing down of inflation which still leads to job losses but not as great as it would be with deflation.