As the inflation growth is slowing down, Biden's policies are beginning to work; in the meantime, Trump curries favor with big businesses, promising to have tax and regulatory policies dear to their ears. Inflation has indeed been Biden's Achilles heel. However, one expert on the economy today on media says that Trump's policies would cause inflation to surge again, mainly because of his proposal to raise import taxes and enhances at a meeting with the Business Roundtable 6/13:
Updaate: June 25, 2024 "We believe that a second Trump term would have a negative impact on the U.S.'s economic standing in the world, and a destabilizing effect on the U.S.'s domestic economy," the economists write in the letter. "Many Americans are concerned about inflation, which has come down remarkably fast.7 hours ago
There are other inflation boosters proposed by Trump:
- One way is his promise to appoint loyalists to him to the Federal Reserve, which would make decisions based on short-term political gains to make Boss Trump look good. That idiocy would take the lid off sound economic principles and throw the economy into chaos in the longer run but benefit Trump in the eyes of his low-information supporters. Chaos is the worst enemy of businesses and Wall Street investors who depend on long-term planning they can depend on.
- Another Trump policy is to raise duties on all imports by 10% across the board. This one is a surefire proposal floated at a meeting with big business execs 6/13, per Yahoo News, and to make that take the place of income tax" and earlier with House GOP members. Lovely for big businessmen, but screwed would everyone else, especially consumers on a budget. That is the ultimate of regressive taxation by shifting the burden to the working middle class and poor. https://sg.news.yahoo.com/trump-floats-one-weird-idea-220317924.html
- . Another Trump proposed idiocy is to round up an estimated 10 million migrants to put them in concentration camps to determine if they had documentation of legality to deport them, which is also inflationary. We already have a labor shortage and the best employment rates since the 1960s, which has contributed to inflation. along with the supply chain, COVID-19 caused shortages.
https://www.wsj.com/economy/central-banking/trump-allies-federal-reserve-independence-54423c2f
https://mufticforumblog.blogspot.com/2024/05/warning-to-consumers-buyer-beware-if.html
https://www.wsj.com/articles/trump-vs-biden-an-economic-gamble-either-way-6c979881
https://www.cnbc.com/2024/06/13/trump-all-tariff-policy-to-replace-income-tax.html This stupidity would allow US manufacturers the ability to raise their prices since they would not have to compete with cheap imports anymore. Screw the consumer is the GOP's game. Europe has the equivalent of this proposal called the VAT tax. It is very regressive since per income level the poor and middle class pay a much larger portion of their income on basic needs. Tariffs/duties/import charges are just passed on to consumers and not absorbed by profit margin-protecting businesses. https://www.investopedia.com/articles/economics/08/tariff-trade-barrier-basics.asp#:~:text=Tariffs%20are%20a%20type%20of,passed%20on%20to%20end%20consumers. The logic escapes me: killing off imports as a substitute for income taxes? That one is self-cannibalizing, killing off the source of income to the treasury..even if, at the beginning, it generates income. It is also a formula for inflation, as costs are passed onto consumer prices. .
https://www.cnbc.com/2024/06/14/ron-insana-trumps-all-tariff-policy-pitch-could-rattle-the-economy.html#:~:text=This%20week%2C%20Trump%20floated%20the,tax%20with%20a%20flat%20ta"Such a move would adversely affect the U.S. economy, raising taxes on those who can least afford them, stoking inflationary fires and, at least theoretically, spurring a recession."x.
Wall Street Journal...backing Trump, even says Trump is a gamble....but they look at it from the investor side and stock market (which is now booming)...and not from us the consumer side. Opinion | Trump vs. Biden: An Economic Gamble Either Way (msn.com They acknowledge the inflationary risk Trump proposes and ignores the polarization of the Fed....which I see as the greatest threat to both investors and consumers. https://www.wsj.com/articles/trump-vs-biden-an-economic-gamble-either-way-6c979881
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