POLL: Should Biden Cut or Eliminate TARIFFS to Reduce INFLATION

[What Would Jesus Do?]

The Peterson Institute for International Economics estimates that reducing a variety of import tariffs could lower inflation by 1 to 2 percentage points. That might sound small, but at a midpoint it would save the average household about $800 per year.

One way Biden could cut inflation

The Trump trade tariffs raised costs for Americans when he imposed them in 2018 and 2019. Biden could undo them.

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[soybean]

Tarriffs are a quagmire. A much better, and faster, way to curb inflation is for the Fed to do a emergency 1% raise hike all at once.

 

[What Would Jesus Do?]

Tarriffs are a quagmire. A much better, and faster, way to curb inflation is for the Fed to do a emergency 1% raise hike all at once.

Yeah. Frankly I'm surprised we haven't seen a half point rise this week. Maybe next week.

A full point might be too much of a shock, although it would be nice to see the low rate distortion taken out of the stock markets.

Should we worry about a depression yet? I know everything is booming and the pandemic seems to be waning, but we still haven't faced the food and refugee crises of the Ukraine war, and supply chains still struggle. Inflation isn't the only worry.

 

[NCHawk5]

Tarriffs are a quagmire. A much better, and faster, way to curb inflation is for the Fed to do a emergency 1% raise hike all at once.

Yeah that’s a great idea 🙄. What’s the worst that could happen?

 

[soybean]

Yeah that’s a great idea 🙄. What’s the worst that could happen?

A splash of cold water is exactly what this economy needs right now...take a bit of the froth out and then resume regular order growth going forward.

 

[NCHawk5]

A splash of cold water is exactly what this economy needs right now...take a bit of the froth out and then resume regular order growth going forward.

Which is fine for people like you and I who can absorb a shock. A Fed-triggered recession would be worse on the poors than inflation imo.

 

[Finance85]

OF all those choices, there are none that I can check.

IMO, the only real use of tariffs should be to offset government subsidies of commodities. Examples would be Canada subsidizing their lumber industry to provide a competitive advantage over US lumber, or China and Japan subsidizing steel to provide a competitive advantage over US steel production.

Trump used tariffs as punishment, which simply escalates trade problems, and of course raises prices. The collected tariffs never find their way to the consumer, ultimately hurting the consumer.

So my answer is to keep tariffs that are offsets, and eliminate tariffs, or the level of tariffs, that are punitive. Get back to the notion of free trade.

 

[What Would Jesus Do?]

Which is fine for people like you and I who can absorb a shock. A Fed-triggered recession would be worse on the poors than inflation imo.

Contrary to popular (conservative?) belief, when an otherwise good policy hurts some demographic, we don't actually have to leave them hanging.

 

[NCHawk5]

Contrary to popular (conservative?) belief, when an otherwise good policy hurts some demographic, we don't actually have to leave them hanging.

How would we help them? Juice the economy? Then we’re right back to where we were or worse.

 

[What Would Jesus Do?]

OF all those choices, there are none that I can check.

IMO, the only real use of tariffs should be to offset government subsidies of commodities. Examples would be Canada subsidizing their lumber industry to provide a competitive advantage over US lumber, or China and Japan subsidizing steel to provide a competitive advantage over US steel production.

Trump used tariffs as punishment, which simply escalates trade problems, and of course raises prices. The collected tariffs never find their way to the consumer, ultimately hurting the consumer.

So my answer is to keep tariffs that are offsets, and eliminate tariffs, or the level of tariffs, that are punitive. Get back to the notion of free trade.

Which is why I keep suggesting climate change and human rights tariffs.

In case it's not obvious to everybody, when a country allows trashing the environment and exploiting the population, those are, in effect, subsidies to the businesses that do the dumping and the exploiting.

Are you with me on this @Finance85 ?

 

[Finance85]

Which is why I keep suggesting climate change and human rights tariffs.

In case it's not obvious to everybody, when a country allows trashing the environment and exploiting the population, those are, in effect, subsidies to the businesses that do the dumping and the exploiting.

Are you with me on this @Finance85 ?

I can relate. I know of a company that refurbishes large circuit boards. They also buy outdated computers that would otherwise be sent to a landfill. They sell all the circuit boards to a scrap company, who then sends them overseas. The boards are melted, with the different materials forming layers in the melting pot, and are skimmed. This process can't be done in the US because some of the materials become toxic. So... they go to a Pac Rim country that looks the other way.

The problem with such policies is politicians and bureaucrats will always find a way to go too far. It's a noble goal in theory though.

 

[comp_sci_hawk]

Would it even matter? The GOP, the party of complete obstruction would simply find another replacement for the tarriffs to make sure inflation stays the same. That asswipe Abbott is already doing that today in Texas by his inspection hold ups. The GOP not interested in helping the average American get through this crisis. They are only interested in self preservation, gaining and retaining power, oh and finding every way to "own the Dems".

 

[What Would Jesus Do?]

I can relate. I know of a company that refurbishes large circuit boards. They also buy outdated computers that would otherwise be sent to a landfill. They sell all the circuit boards to a scrap company, who then sends them overseas. The boards are melted, with the different materials forming layers in the melting pot, and are skimmed. This process can't be done in the US because some of the materials become toxic. So... they go to a Pac Rim country that looks the other way.

The problem with such policies is politicians and bureaucrats will always find a way to go too far. It's a noble goal in theory though.

If you haven't already read this, I suggest checking it out.