"After months of insisting that tariffs had nothing to do with rising grocery prices, Trump abruptly reversed course this week, rolling back duties on more than 200 food-related products."
Since Trump’s inauguration, US food inflation has run about 2.1%. As any economist can tell you, tariffs don’t cause inflation, but they can affect prices of individual products. That will give the appearance of some relief to counter the fakes news reporting about the cost of living. American wages are currently rising at over 4% per annum so affordability is improving.
Which economists are You talking about here? The ones that believe that You spend Your way to prosperity, or the ones that follow the Austrian School of economics?
So you agree tariffs can’t cause inflation. Not to mention a new study just confirmed they reduce inflation. The one I had in mind was Milton Friedman.
Did Not say that tariffs can not cause inflation . You said it. If You add money or dollars to supply of money You add inflation. Because this money was not earned nor saved. . This is the understanding I get from reading about monetary works. But then I may not read the books You do !
Tariffs don’t directly affect the money supply. By raising revenue and reducing the government deficit they can reduce inflation. The new study from the Federal Reserve Bank of San Francisco has just confirmed the counter-inflationary effect of tariffs.
Since Trump’s inauguration, US food inflation has run about 2.1%. As any economist can tell you, tariffs don’t cause inflation, but they can affect prices of individual products. That will give the appearance of some relief to counter the fakes news reporting about the cost of living. American wages are currently rising at over 4% per annum so affordability is improving.
Which economists are You talking about here? The ones that believe that You spend Your way to prosperity, or the ones that follow the Austrian School of economics?
Any economist who understands monetary theory.
Not many in My mind! Plus Monterey policy is no longer theory , but fact. That is why I said Austrian school .
So you agree tariffs can’t cause inflation. Not to mention a new study just confirmed they reduce inflation. The one I had in mind was Milton Friedman.
Did Not say that tariffs can not cause inflation . You said it. If You add money or dollars to supply of money You add inflation. Because this money was not earned nor saved. . This is the understanding I get from reading about monetary works. But then I may not read the books You do !
Tariffs don’t directly affect the money supply. By raising revenue and reducing the government deficit they can reduce inflation. The new study from the Federal Reserve Bank of San Francisco has just confirmed the counter-inflationary effect of tariffs.
I guess all we can do is hope for help from somewhere else ... we obviously can't look after ourselves