"the $300 billion in revenue, which went to pay down one fifth of our *national debt* in just one year."
The national budget deficit, not the national debt (unfortunately).
The tariffs have been a powerful instrument with which to rein in Chinese expansionism. Thousands of factories were forced to close or move to Southeast Asia, throwing millions of people out of work. Many of them received no severance pay, and there are all sorts of reports leaking out of protests and even riots in front of plants and factories by workers who are owed weeks or months of back pay.
When you look past the arrogance and defiance of the official news media in China (and the anti-Trump media in the U.S., much of it beholden to China), you will witness a country in crisis, damaged first by the real estate bubble and now by the crash in international trade. They can't just switch to exporting their products to Asia and Europe, because the U.S. is watching for transshipments, i.e. attempts to bypass the tariffs.
The Communist government's attempts to retaliate with its own tariffs badly backfired. Most of what the U.S. buys from China, except for rare earths and a few other monopolized products, is unnecessary. Whereas, most of what China buys from the U.S. is necessary, for example food products and spare parts for Boeing aircraft. When Xi Jinping banned the import of those spare parts, hundreds of aircraft were grounded, and he was forced to rescind the ban.
As for the tiresome accusations by the American Left that tariffs are somehow hurting the U.S. consumer... well, sure, in the long run, we will indeed pay higher prices for products manufactured domestically, but many products will also just be manufactured in places like Vietnam and Malaysia which have approximately the same cost basis as China.
There is a lot of interest in moving manufacturing plants back to the U.S. to avoid trade uncertainty, and this will doubtless lead to more wealth in the hands of Americans, offsetting any short term costs of tariffs.
Absolutely love your analysis each day! I don’t always agree with everything, but your arguments are all so logical and well-reasoned. Keep up the great work!
Here's a question for yellen,Powell, krugman and the wsj economics mavens blindman and gallstone: what has been more TRANSITORY: TRUMPS TARIFFS OR THEIR INFLATION ( yes they own it)?
I do all the shopping in this family. Prices have dropped on many groceries, HD is stable. Our natural gas and electric bills are likewise stable. Gasoline in Winchester, VA jumps around for reasons I can't fathom: $2.99 to $2.39. Travel SW 30 miles and further prices are a stable $2.59.
If US firms pay the tax and maintain profits, rewards to shareholders, growth, and salaries, that means those US firms were previously sandbagging performance - they could have been more productive but weren't.
I agree, inflation data (CPI, PPI, Truflation) all point to lower inflation. The other side of the coin, corporate profits seem to generally be beating estimates and are partially responsible for the stock market highs. Even if US firms have paid the tariffs and not passed them on. So, it’s likely that tariffs have hurt neither the US consumer nor US firms.
Sargon the Deceiver at it again. Trump claimed the tariffs would be paid for by foreign countries. They're not. Acting like this is a "gotcha" moment because it's U.S. firms AND consumers paying for the tariffs obscures the fact that U.S. companies pay them with the money they make from consumers, so this "gotcha" moment is nothing but semantics. In the end these are NOT being paid for by foreign exporters as Trump promised.
"the $300 billion in revenue, which went to pay down one fifth of our *national debt* in just one year."
The national budget deficit, not the national debt (unfortunately).
The tariffs have been a powerful instrument with which to rein in Chinese expansionism. Thousands of factories were forced to close or move to Southeast Asia, throwing millions of people out of work. Many of them received no severance pay, and there are all sorts of reports leaking out of protests and even riots in front of plants and factories by workers who are owed weeks or months of back pay.
When you look past the arrogance and defiance of the official news media in China (and the anti-Trump media in the U.S., much of it beholden to China), you will witness a country in crisis, damaged first by the real estate bubble and now by the crash in international trade. They can't just switch to exporting their products to Asia and Europe, because the U.S. is watching for transshipments, i.e. attempts to bypass the tariffs.
The Communist government's attempts to retaliate with its own tariffs badly backfired. Most of what the U.S. buys from China, except for rare earths and a few other monopolized products, is unnecessary. Whereas, most of what China buys from the U.S. is necessary, for example food products and spare parts for Boeing aircraft. When Xi Jinping banned the import of those spare parts, hundreds of aircraft were grounded, and he was forced to rescind the ban.
As for the tiresome accusations by the American Left that tariffs are somehow hurting the U.S. consumer... well, sure, in the long run, we will indeed pay higher prices for products manufactured domestically, but many products will also just be manufactured in places like Vietnam and Malaysia which have approximately the same cost basis as China.
There is a lot of interest in moving manufacturing plants back to the U.S. to avoid trade uncertainty, and this will doubtless lead to more wealth in the hands of Americans, offsetting any short term costs of tariffs.
Absolutely love your analysis each day! I don’t always agree with everything, but your arguments are all so logical and well-reasoned. Keep up the great work!
Here's a question for yellen,Powell, krugman and the wsj economics mavens blindman and gallstone: what has been more TRANSITORY: TRUMPS TARIFFS OR THEIR INFLATION ( yes they own it)?
Good catch, Batya!
I'm just catching up on your sub stack. I hope you discuss the SCOTUS ruling Tarrifs on your show this evening!
Buzzackly!!!
I do all the shopping in this family. Prices have dropped on many groceries, HD is stable. Our natural gas and electric bills are likewise stable. Gasoline in Winchester, VA jumps around for reasons I can't fathom: $2.99 to $2.39. Travel SW 30 miles and further prices are a stable $2.59.
Unfortunately for you, the new Democrat regime in Virginia is working hard to tax the middle class and ruin the economy of that state.
Since most of their supporters work for the Federal government, they couldn't care less.
Terry, thanks for reminding me how f**ked we are! Sad sad sad. And I just paid off my retirement home in Bedford (Deep red)
And you have to realize the WSJ is just another hack MSM with TDS.
True. Just another cage liner.
Yes John Carney At Brietbart sunk that story yesterday. John does great work.
If US firms pay the tax and maintain profits, rewards to shareholders, growth, and salaries, that means those US firms were previously sandbagging performance - they could have been more productive but weren't.
Batya, my dear,
If you and Walmart pay a tariff, what do you think the result on Walmart’s prices is?
And who picks up that tab? Not Sam Walton. Walmart’s customers.
Wisdom !
Not a chance that $300B paid down ONE FIFTH of our national DEBT.
I agree, inflation data (CPI, PPI, Truflation) all point to lower inflation. The other side of the coin, corporate profits seem to generally be beating estimates and are partially responsible for the stock market highs. Even if US firms have paid the tariffs and not passed them on. So, it’s likely that tariffs have hurt neither the US consumer nor US firms.
Sargon the Deceiver at it again. Trump claimed the tariffs would be paid for by foreign countries. They're not. Acting like this is a "gotcha" moment because it's U.S. firms AND consumers paying for the tariffs obscures the fact that U.S. companies pay them with the money they make from consumers, so this "gotcha" moment is nothing but semantics. In the end these are NOT being paid for by foreign exporters as Trump promised.