This is the first of what I am sure will be multiple posts about the tariffs that are being imposed on imports to our country. There are many people (experts and not so experts) who have chimed in with their thoughts on what will happen as we move forward into what is somewhat uncharted territory. Much of what is being spouted often reflects the ideology of the spouter.
Just what is the purpose of what PDJT is doing? PDJT is basically saying that American workers want to compete on an equal footing people in foreign countries. Believe it or not, the Marshall Plan which was put in place to help Europe recover from WWII is still in effect. This helping hand has been going on for some 75+ years. It has been part of the reason that manufacturing has been hollowed out in this country.
This imbalance in how goods movement and creation has been handled has resulted in a substantial disadvantage to companies making things here. Of course, onerous regulation is another cost issue that this administration is addressing.
How has the announcement of tariffs been received around the world? Appearing on This Week with George Stephanopoulos, White House Director of the National Economic Council (NEC), Kevin Hasset, shared that, “more than 50 countries have reached out to the president to begin a negotiation.”
Let’s be reminded that, for many countries, access to the US market is a significant factor in their economy. The US consumer is the largest such economic block in the world. The ability to sell products in America is of primary importance.
Despite Stephanopoulos trying to put words in his mouth, Hasset cuts through most of his BS quite easily and maintains a very pleasant demeanor throughout the interview.
Despite all the media pontification to the contrary, the idea that tariffs are going to create raging inflation is just wrong. They did not do this during Trump’s first term.
Most of the inflation during Biden’s term was due to out of control increases in the cost of energy and the wild printing of dollars by the Federal Reserve to meet the spending needs of the drunken sailor who was running the US government. This administration is addressing both of those issues. A reduction in inflation has already been noticed.