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“Whenever you find yourself on the side of the majority, it is time to reform (or pause and reflect).”
― Mark Twain
Subscriber Comments
Trump’s pick for Commerce Secretary, Howard Luttnick advocates for no personal income tax. They will fund the government via Tarriffs just like Trump said a month ago. pic.twitter.com/RkJ6QmbbfO
— They are all corrupt (@GOP_is_Gutless) November 20, 2024
Most campaign trail promises are just talk to get elected. Perhaps the Trump Administration is different, but it won't matter. Enacting tariffs on Chinese or foreign goods won't reduce the deficit or lower the economic burden for Americans. Raising tariffs will force businesses to raise prices to maintain margins.
The cost advantage of manufacturing goods in China or overseas, however, is so high that even tariffs of 100% won't force companies to return manufacturing to the United States. Additionally, the US lacks the assets and workforce to manufacture today's goods efficiently. Manufacturing jobs and assets represent only a small fraction of the US economy.
The manufacturing of goods also follows long-term cycles. Manufacturing and manufacturing jobs have been flowing out of the United States since 1945 towards the new core economy. This cycle cannot be stopped by policy. The only thing tariffs will do is make "Made in China" more expensive for households already struggling to pay their bills.
Of course, politicians do what they want because they don't listen to the invisible hand.
Follow me on 𝕏 or Facebook for further discussion.
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The Matrix provides market-driven trend, cycles, and intermarket analysis.
