by Summary:
Inflation assumptions may be wrong. 
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
Inflation assumptions may be wrong. 
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
Robert Vienneau writes Austrian Capital Theory And Triple-Switching In The Corn-Tractor Model
Mike Norman writes The Accursed Tariffs — NeilW
Mike Norman writes IRS has agreed to share migrants’ tax information with ICE
Mike Norman writes Trump’s “Liberation Day”: Another PR Gag, or Global Reorientation Turning Point? — Simplicius
| Inflation assumptions may be wrong.  |
Mike you said, increase of interest rate is reflected in all the prizes hence fuel inflation, and now about tariffs you are not so sure ?
At a 25% tariff, that's getting very close to a lot of importers profit margins. I don't see an environment where the majority of importers do not raise prices, possibly not the full 25% but they're going to be raised.
Even if prices are not raised directly by the full amount, this will hit exporting businesses at the margins of production (and domestic producers who use imjported goods in supply chains) , leading to reduced supply and putting some out of business completely. This reduction in supply and market competition will then still end up raising prices for US consumers over time UNLESS production really does shift back significntly to the US, which will take many years (and will be increasingly automated to avoid the higher labour costs)
Some of these costs can be compenstated for with tax reductions elsewhere, as is the plan, but it doesn't mean tariffs are a better tax than the income tax they wish to reduce, they're considerably worse imo.
The only taxes that aren't ultimately 'passed on' to consumers are one's that come out of monopoly profits, that's land value taxes, resource profit taxes , fees for intellectul property etc.
Thanks for the updates, Mike.
Screw job by GOP continues, Reagan outsourced all the jobs to China, Mexico etc. Now the result 30% of sit on your ass and click a mouse services in america are dependent on foreign country business. Watch this sector get retaliated. Tarriffs will cause decoupling of America king dollar as trade will by pass the USA. Fuck Trump
The only thing that may be used against raising prices even beyond the point of preservation of profitability is domestic competition against the imported items.
The rich and their bots who hold %80 of the assets screaming about stocks so the working class can have good jobs. Boo hoo
Trump and Musk lining thier pockets, don't give a shit about you.
Yes correct call on bonds I listened and took action back when you spoke of this trend.
I dont think the bilge pump will be able to handle the iceberg we just hit
Say goodbye to King USD, the 8.2 billion people in the world don,t need the 300 million americans, and Trump just told the 8.2 billion people this. They will by pass US trade, screw idiot confused Trump.
Trump if your following Mike, (and you should be), Instead of Tariffs do something about Measle outbreak.
Trump loves American labor unions bring jobs back
Lol no he doesn't!
Usa taxpayers have already been scammed by other countries tariffs on products sold by this country
Trump's team have espoused a rationale based on trade imbalances between the US and the rest of the world. This imbalance is not as much of a problem as most people argue. Many people like the analogy of US economy to our citizen's household economy (which is a fallacy). But think about your analogy transposed to the world trade scenario. The US is the wealthiest country in the world. It necessarily has a trade imbalance with poorer countries. You cannot have a balanced trade ratio with your wealthy neighbor, or with a wealthy corporation. They buy your labor (services), you don't buy theirs; so there is a trade imbalance between the two of you.
The household economy analogy isn’t a fallacy. The trade imbalance applies there perfectly as well.
@@smugdug Does your analysis take into account the fact that the US govt is the sole creator of US dollars? It can create all it needs to pay all bills. Our household economies do not have a treasury department that can create dollars on command. This difference is the basis of the fallacy.
@@gregmarcum7347I understand that, however the ability to inflate the currency is just a protraction of the ultimate end point the awaits insolvent households: default. It may never happen in our lifetime, but it will happen if the printing doesn’t stop.
Tariffs in no way make a nation wealthy. The tax on the importer gets passed to the consumer. If one pays a 34% (china give or take) the import must increase the price. The tax is to replace the wealthy’s tax cut. All other ideas are BS. This is what trump does. He’s for himself, which means the wealthy as they out him in office.
BTW, Americans are not going to produce anything less than other countries as the workers won’t work for a few dollars a day.
American dream is wage slaving in a manufacturing job
Thank you for the conversation Mike!
The Antarctica tariff is going to help the steel industry make a comeback
Not a good look attacking your allies. We will never forget this.
Lol, how can you assume the business will just eat up the cost and NOT pass it along to the consumer? That’s just naive, to say the least.