Study from Wharton School:
Summary: Many trade models fail to capture the full harm of tariffs. PWBM projects Trump’s tariffs (April 8,
2025) will reduce long-run GDP by about 6% and wages by 5%. A middle-income household faces a $22K
lifetime loss. These losses are twice as large as a revenue-equivalent corporate tax increase from 21% to
36%, an otherwise highly distorting tax.
More at link.
Wharton? Funny that they gave this idiot a degree in economics, when he clearly doesn’t know anything.
As an anecdote: had to have some repairs on our vehicle. The shop indicated that tariffs are affecting their prices for parts, and they -of course- have to pass some of that on if they want to stay in business.
They had no choice. He bought it fair and square
Well, da-da did. Puppy doesn’t pay for anything.
Pete
I think this phrase is completely ignorant.
I admit I’m surprised at the support for tariffs here.
People support other things, the tariffs go along for the ride.
We can say “they are a tax, but at least they are regressive and at least they are OUR tax.”
Appears the free market concept is not so important afterall.
This is just a guess, but…
I think support is from those who think it is a means to get someone else to pay taxes for us. That somehow those nations will just eat the cost, and it will go straight to reducing our deficit. IMO, it is being sold -at least in part- in that way. Similar to “Mexico is going to pay for the Wall”. People are all for it if they think they’re getting something for nothing.
The reality, of course, is that the cost ultimately will be paid by the residents of this country. Whether direct tax increases, or tariffs that raise the price of goods that we ultimately buy, we pay. More specifically, us little people. The rich folks own enough congress-persons that they get special breaks.
Agreed. As we all know, a substantial proportion of the U.S. population believes anything that Donald tells them, even when it makes no sense and is contradicted by easily obtained evidence.
What’s also clear is the U.S. has not been faced yet with the full cost of the tariff regime. There’s a lot of tariff dodging from China, and a substantial percentage of products from Canada and Mexico are under the USMCA.
The study clearly delineated the harm from the tariffs. Yet you posted the above.
Which on the surface suggest you support the tariffs.
Not sure where you got that. The study listed numerous downsides. It is from Wharton. POTUS is from Wharton, and yet favors tariffs. I question Wharton granting such an idiot a degree (in economics!). He doesn’t know anything about economics, and reflects badly on Wharton.