Tariffs and Inflation Kevin Quinn, Econospeak Jason Furman and Janet Yellen have both suggested that cutting Trump’s tariffs would be anti-inflationary. But most economists agree that the incidence of the tariffs is for the most part on US consumers, not foreign suppliers (pace the treasonous and ignorant former president, who crowed about all the revenues we were raising from China). So how is a tax cut anti-inflationary? There is a supply-side effect, which is all to the good, but the demand-side effects may well wash that out. So get rid of the tariffs but reverse the Trump tax cuts, which Manchin favors, through reconciliation. Taxes remain the same, so we’ve neutralized the effects on demand; and we still get the good supply side effects of
Topics:
Dan Crawford considers the following as important: inflation, tariffs, US EConomics, US/Global Economics
This could be interesting, too:
run75441 writes May 30, 2023 – Letters from an American
run75441 writes The U.S. Needs to Reimagine Its Pharma Supply Chain
NewDealdemocrat writes House prices may have bottomed, YoY price increases (leading inflation) have declined
Angry Bear writes What Happened To Paying Off The National Debt?
Tariffs and Inflation Kevin Quinn, Econospeak
Jason Furman and Janet Yellen have both suggested that cutting Trump’s tariffs would be anti-inflationary. But most economists agree that the incidence of the tariffs is for the most part on US consumers, not foreign suppliers (pace the treasonous and ignorant former president, who crowed about all the revenues we were raising from China). So how is a tax cut anti-inflationary? There is a supply-side effect, which is all to the good, but the demand-side effects may well wash that out. So get rid of the tariffs but reverse the Trump tax cuts, which Manchin favors, through reconciliation. Taxes remain the same, so we’ve neutralized the effects on demand; and we still get the good supply side effects of a more rational global division of labor.