Summary
Fox News host Julie Banderas warned that President-elect Donald Trump’s proposed tariffs—25% on products from Mexico and Canada and 10% on those from China—could significantly raise costs for Americans, as many businesses rely on foreign goods.
While some companies are shifting to U.S.-based suppliers or stockpiling goods ahead of the tariffs, Banderas noted that buying American often results in higher prices.
She highlighted that the financial burden would likely fall on consumers, questioning, “Who’s going to pay for that? We are.”
Economists have also warned of inflation risks.
Deflation is actually really bad. It essentially means that not spending money is the best option, which makes it so people stop buying as many things and the economy slows down dramatically. A small amount of inflation is ideal. It encourages spending but doesn’t do much harm either.
This sounds completely backwards, like if you are talking purely about investment.
If not it seems to completely ignore that high prices alone would discourage spending, particularly on non-essential things (even then, don’t think for a second that there aren’t people skipping healthcare or meals).
The only other way I could interpret would be that high prices force people to spend more money on just essentials (even if they’re buying less than they otherwise would), somehow painting living paycheck-to-paycheck as a good thing because it means more money in the economy.
It’s not about the price. Price is just a number. Prices today would look insane to someone 100 years ago. It’s about how price changes over time.
If your money becomes less valuable the longer you wait, it’s worse to wait. The longer it takes for you to spend it the less buying power it has.
If it becomes more valuable over time then it encourages hoarding your money because the longer you take to spend it the more buying power it has.
That’s actually neoliberal propaganda and not true. “The economy” in the context of GDP turned out to really mean “rich people”.
In our current economic model, any deflation creates a perverse incentive to not spend. It is extremely bad for the economy, and all of us reliant on it. The rich are one of the few groups that come out ahead (relatively).
Like it or not, we are all stuck on that merry go round. Until we find a graceful way off, it’s in no-one’s interest to jam it up.
Sure, yeah. It’s especially sucks for rich people and business owners, but no it’s not just “neoliberal propaganda.” It’s really simple economics and logic. If your money becomes more valuable over time, it is on your benefit to save it. If it becomes less valuable over time, the opposite is true and you should spend it. And yeah, capitalism sucks, but we’re all tied to the health of the economy, which doesn’t mean the stock market like the media often links it to, but if businesses can’t afford to hire as much staff, all of us lose.
