Jerome Powell is eyeing lower inflation, but Oxford Economics says it’ll rise after the presidential election—no matter who wins.
finance.yahoo.com
The Felon has a plan to dramatically increase tariffs. That will sky rocket inflation. But he doesn't care. He and his Billionaire Buddies are good with it.
This is a tricky subject as I consider myself libertarian but probably moreso socially than economically of late it seems but I do not like government intervention in the economy. Thus, in theory I disagree with tariffs, except when it is related to dealing with businesses from enemy states (a la China, Russia, N Korea, Iran etc).
The biggest influence to inflation will depends almost solely on how he offsets this tariff with spending, which is what Rand Paul is trying to get Trump to commit to. If he drags businesses back to America and decreases government expansion, inflation will go down, potentially drastically as Argentina has achieved.
Tariffs are nuanced and the full story isn't being presented by media which is funded by their advertisers. CNN for instance, mocked Trump in 2016 when he said he would confront China, they were actively cheering for China. Trump and his team knew better. As did anyone with a curiousity with economics.
The truth is that tariffs only increase prices if the company passes on the tariff to the consumer. Remember these are for foreign made products by people being employed outside America. America loses on the job AND taxation front (as workers are taxed by their income). These companies can do as they please and simply accept lower profits from manufacturing overseas.
Further to the above, when an American buys a product made overseas, a multi-national company can take the capital earned in America and move it to the other foreign nation in which to manufacture, so it is a net loss for America as currency flight occurs.
There is no law that says you must buy "made in China". Nor is there a law that says a company has to manufacture overseas.
Therefore, if the price of a foreign made product increases, blame the company that made it and isn't willing to pay the tariff. They are exploiting the arbitrage of currencies and wages, there is little ingenuity in making socks and Dollar Store items.
My guess is that if Trump applies broad tariffs there will be many exceptions and companies will lobby to try and promote such exceptions.
www.newsweek.com
