WSJ - Why Economists Hate Trump's Tariff Plan

[MrWonderland]

I’m not the biggest supporter of Trump’s plans, but the thinking is sound within the bounds of modern economic theory. Yes, tariffs will increase inflation and yes, prices for certain goods will go up. However, Trump plans to reduce inflation by bringing down energy costs and, hopefully, reducing the size of government. More importantly, the market is driven by outlook and the markets are loving Trump. That’s really the “secret” to the Trump economy, high consumer outlook. On the balance, we should see normal levels of inflation, nothing catastrophic. Important factors to consider though are the overseas wars and the looming collapse of the everything bubble. These will play a much larger economic role than a few tariffs levied against China; for good or bad.

[HDGristle]

We can touch on energy costs in a different thread. Whole different monster.

You're hoping for this
https://www.barrons.com/articles/tru...china-d1da2d50

That the most draconian tariff actions aren't enacted and force China to the table. Can he finish the deal in 4 years?

Tariff revenue isn't going to bring in enough. And if the tariffs hurt enough in the short term those midterms could mean he only has 2 years to get the job done before it becomes the next president's problem because he's stuck with divided governemnt.

[HDGristle]

https://finance.yahoo.com/news/trump...133545785.html