This is the economy, Donald | Wired
If economic trends continue, tariffs – which, despite the president’s insistence, tax on US companies and ultimately US consumers – who are associated with rising unemployment, could be a time bomb.
“If this test disappears, it will be terribly defeated, and I think we will start seeing its effects sooner,” says a second Trumpworld strategist.
Not missile science
There are a lot of confrontation at GOP and the White House of Trump.
A White House official tells me, “I think we have shown that the inflation bit has been resolved.” “When the private sector is willing to cooperate with us and understands and appreciates our duty to rebuild production, we have shown over and over again that we would like to meet them in half way.”
Is there any more concern about the number of jobs, especially given the decline in labor participation rates and the revision of job growth from hundreds of thousands of people in spring to tens of thousands?
“No”, a Republican member of the Congress close to the President when sending me a message in a text message tells me whether they are worried about the job market. “By no means. The income from the tariffs has been good. In addition, the reduction of large taxes recently. (August 15th was Trump’s meeting with Vladimir Putin with the Russian president in Alaska; no trade deal has been realized.)
However, the economists I talked to do not buy it.
“All signs on the inflation front look very pessimistic,” says James Angel, a professor at the University of George Town. “You don’t have to be a rocket scientist to find out that tariffs raise the prices we pay for imported goods. No change of rotation changes.”
Justin Wolfers, an economist at the University of Michigan, says the labor market looks quite unpleasant even before the tariffs. “He says,” The job growth has not slowed. “
One of the biggest Trump World justifications for tariffs that is not a big thing for American consumers is not simply continuing, Woolfarz adds. As Trumpworld’s first strategist pointed out, some companies – especially American carmakers such as General Motors – show in their income that they want to eat tariffs at their profits.
“This is what you usually expect to happen in the short term, because jobs do not change their price every time the president opens his mouth,” says Wolfers. “Now that the tariffs are set, and they are witnessing the compression of the margins, this is what you expect jobs to start thinking about reconsideration.”
Consumers should expect consumers to feel more painful in the second half of this year. “
The angel says that even continuing the status quo with permanent delayed tariffs can still have devastating consequences.
“Economic chaos, with again and again, has reduced business and consumer expectations,” explains. “This in itself will probably cause stagnation.”
Citizens
Federal Reserve President Jerome Powell does not calm Jerome Powell because Trump has made it clear that he would like Powell’s final replacement to reduce interest rates, even if he does this with the Federal Reserve’s dual ruling to maintain prices and employment.
These sources also do not help me that Trump has shown the head of the Bureau of Labor Statistics after the latest job numbers that showed considerable revision and demonstrated in recruitment over the past few months. .
