This one definitely took the bleach injection.

Reply to this note

Please Login to reply.

Discussion

The tariffs argument is so retarded lol

Whose argument? Trump’s or the opponents’?

All of it lol tariffs can’t fix inflation

Tariffs CAUSE inflation. So do tax cuts, and so deportations if cheap labor is impacted.

The trump fans in my group chat need to study real economics

I am totally against tariffs as a matter of principle, because tariffs are a tax, and all taxes are slavery and theft.

That said, the statement "tariffs cause inflation" is incorrect. Tariffs cause a one-time increase on the nominal prices of goods.

However, inflation is *not* an increase in prices, but a decrease in the purchase power of the currency that, sustained in time, translates into successive increases in nominal prices.

In other words, inflation causes price increases, but not all price increases are inflation, and tariffs are not it.

This sounds like an "ackchually", but it's not.

Inflation is an increase in prices.

It can be monetary inflation, as you describe. Most people have no clue about printing and purchasing power debasement as the insidious tax that it is. I agree with you.

But there is also price inflation. If people stockpile toilet paper in a pandemic, available supply dwindles and the price of toilet paper skyrockets until supply can adjust to meet demand.

If 20% across-the-board tariffs cause prices of imports to increase, I think Americans will call it “Trump Tariff Inflation,” regardless of what Trumpers want them to call it.

Similarly, if the cost of a new roof doubles, because American laborers charge twice what a Mexican crew would, people will call that “Trump Deportation Inflation,” and I don’t think they will care about academic definitions. They will rightly blame Trump for higher prices.