Trump’s tariffs won’t cause inflation
In light of the conversations on cable news over the weekend, we at Breitbart Business Digest feel the need to provide another clarification. Donald Trump’s Tariff Proposal It doesn’t necessarily cause inflation, and those who claim it does are partisan hacks with no credibility on the issue.
It all started (again) over the weekend. ABC’s Jonathan KarlThe former president said,An attack on the truthI spoke with Treasury Secretary Biden. Janet Yellen He spoke for just five seconds about the former president’s proposed tariff plan.
record:
Carl: Let me just ask you this: Donald Trump has floated the idea of replacing all federal income taxes with high tariffs. Do you think that’s even remotely feasible?
Yellen: Tariffs well above 100% would be necessary.
Carl: Okay…
Yellen: The impact is that it will make life harder for working-class Americans…
Carl: Okay, thank you…
Yellen: …and it will hurt American businesses.
KARL: Thank you, Secretary Yellen.
And the interview ended.
This comment is neither thorough nor satisfactory. “There’s a lack of contextual fact-checking.” (News industry readers know what I mean).
So Trump proposed putting a 10% tariff on imports. Since then, the left has been saying that this is Armageddon for the American Family Because all the costs will be passed on to them.
We’ve been through this before and it never happened like that.
President Donald Trump signs a Presidential Memorandum on Protecting the U.S. Lobster Industry in the Oval Office of the White House on June 24, 2020. (Official White House Photo by Shealah Craighead via Flickr)
Fact Check: Media Bias and Reality
I want to clarify a few points John Carney has repeatedly emphasized In this newsletter and on television:
• The best evidence is that tariffs don’t necessarily cause inflation. Trump expanded tariffs when he was president previously.inflation was incredibly low. Biden rolled back the tariffs, and inflation soared. (Whether this is correlation or causation is up for debate, but either way it suggests that the media’s fear-mongering about Trump’s tariffs was not based on evidence.) So when the media claimed tariffs would cause inflation during the Trump presidency, They were completely wrong, but they never corrected themselves..
• Inflation is There is too much cash in the economy and loose Fed policyWe have seen too much of both under the Biden administration, as documented here on a daily basis. It would take a book to summarize Joe Biden’s inflation policies in one place (or, at the very least, Book chapter) this, combined with the excess pandemic savings that flowed into the economy once the lockdowns ended, guaranteed that inflation would spike.
• Tariffs will not cause inflation unless they generate additional revenue. If people do not have any more money (or have no prospect of getting more), they will I’m not going to pay any more It increases demand for goods and services and keeps inflation in check.
All of these are reasons Steve Iceman of The Big Short Fame called the idea that Trump’s tariffs would spur inflation “absurd.”
The media claims these tariffs will raise consumer prices, but we don’t know. John Curl and Janet Yellen have at least Please tell me the context.
Current Cost of living crisisWhile this is largely a product of Joe Biden’s policies and the broader worldview of the Democratic establishment and its corporate allies, we are now receiving some passing political commentary from the people we should least trust on this issue.
However, they do know very well what they are doing, and while it would be rude to introduce a topic that I don’t have time to discuss in detail, a full discussion would probably be deal a devastating blow to their overall argumentIn other words, Orangeman tariffs are bad.
