“We call a tariff a protective measure. It does protect; it protects the consumer very well against one thing. It protects the consumer against low prices,” explained the great economist Milton Fri…
President Donald Trump is shown speaking Wednesday at the White House, shortly after pausing most of the tariffs he imposed on U.S. trading partners last week. “We call a tariff a protective measure. It does protect; it protects the consumer very well against one thing. It protects the consumer against low prices,” explained the great economist Milton Friedman in 1978.
Accordingly, the tariff-spree currently being undertaken by President Donald Trump is a massive tax increase on the American people.“Under all the imposed tariffs, the weighted average applied tariff rate on all imports would rise to 19.9 percent, and the average effective tariff rate, reflecting how much tariff revenue the new tariffs would raise after incorporating behavioral responses, would rise to 11.8 percent under the current tariffs—the highest average rate since 1941,” they explain.
While Trump and supporters of tariffs might be able to point to some jobs created or saved thanks to the tariffs, many more will be lost as collateral damage. Over the next decade, the Tax Foundation notes, American GDP will be reduced by nearly 1% as a result of the tariffs. Think that’s not a big deal? Over 800,000 jobs on net will be lost thanks to the tariffs.
Sure, the do-gooders might be able to do good things with extra tax revenue. Sure, some people will benefit from higher minimum wages. But think about the bigger picture and the cascade of negative consequences. And normally, that’s what conservatives and Republicans do.
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