Olde Hornet
Well-Known Member
Why Is Trump a Tariff Man?
https://www.nytimes.com/2019/12/05/opinion/trump-trade-tariffs.html?smid=nytcore-ios-share
A peculiar aspect of the Trump economy is that while overall growth has been solid, the areas of weakness have come precisely in those things Trump tried to stimulate.
Remember, Trump’s only major legislative accomplishment was a huge tax cut for corporations that was supposed to lead to a surge in investment. Instead, corporations pocketed the money, and business investment has been falling.
At the same time, his trade war was supposed to shrink the trade deficit and revive U.S. manufacturing. But the trade deficit has widened, and manufacturing output is shrinking.
The truth is that even economists who opposed Trump’s tax cuts and tariffs are surprised by how badly they’re working out. The most commonly given explanation for these bad results is that Trumpian tariff policy is creating a lot of uncertainty, which is giving businesses a strong incentive to postpone any plans they might have for building new factories and adding jobs.
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In that case, however, why doesn’t Trump do what the markets keep wrongly expecting him to do, and call it quits? His continuing tariff obsession seems especially strange given growing evidence that it’s hurting him politically.
https://www.nytimes.com/2019/12/05/opinion/trump-trade-tariffs.html?smid=nytcore-ios-share
A peculiar aspect of the Trump economy is that while overall growth has been solid, the areas of weakness have come precisely in those things Trump tried to stimulate.
Remember, Trump’s only major legislative accomplishment was a huge tax cut for corporations that was supposed to lead to a surge in investment. Instead, corporations pocketed the money, and business investment has been falling.
At the same time, his trade war was supposed to shrink the trade deficit and revive U.S. manufacturing. But the trade deficit has widened, and manufacturing output is shrinking.
The truth is that even economists who opposed Trump’s tax cuts and tariffs are surprised by how badly they’re working out. The most commonly given explanation for these bad results is that Trumpian tariff policy is creating a lot of uncertainty, which is giving businesses a strong incentive to postpone any plans they might have for building new factories and adding jobs.
Editors’ Picks
The Champion Who Picked a Date to Die
How This Con Man’s Wild Testimony Sent Dozens to Jail, and 4 to Death Row
When a DNA Test Says You’re a Younger Man, Who Lives 5,000 Miles Away
In that case, however, why doesn’t Trump do what the markets keep wrongly expecting him to do, and call it quits? His continuing tariff obsession seems especially strange given growing evidence that it’s hurting him politically.
