I recognize that your goal is to steer away from politics and present a balanced (and apolitical) economic viewpoint on the issues you address. That said, I feel compelled to comment that the up-side, which you point out -- that tariffs will represent significant uptick in Federal government revenues -- represents a regressive tax burden on the lower and middle class. Lower-income Americans tend to spend a substantially larger portion of their income on goods and services and, consequently, are more vulnerable to the price increases caused by tariffs.
Interesting points on the GDP. I wrote a Substack article a couple of years ago, long before "tariff-gate", that reflected on the impact that lower birth rates and increasing restrictions on immigration might have on our ability to sustain our national GDP. It didn't look good then -- and it looks worse now.
Robert, your conclusion is factually correct since lower-income individuals have a higher MPC (marginal propensity to consume) than higher-income individuals. Still, I leave it to our readers to come up with their own conclusions. I appreciate your insightful comments.
I recognize that your goal is to steer away from politics and present a balanced (and apolitical) economic viewpoint on the issues you address. That said, I feel compelled to comment that the up-side, which you point out -- that tariffs will represent significant uptick in Federal government revenues -- represents a regressive tax burden on the lower and middle class. Lower-income Americans tend to spend a substantially larger portion of their income on goods and services and, consequently, are more vulnerable to the price increases caused by tariffs.
Interesting points on the GDP. I wrote a Substack article a couple of years ago, long before "tariff-gate", that reflected on the impact that lower birth rates and increasing restrictions on immigration might have on our ability to sustain our national GDP. It didn't look good then -- and it looks worse now.
https://open.substack.com/pub/robertlast/p/why-we-need-more-legal-immigration
Thanks for a thought-provoking article!
Robert, your conclusion is factually correct since lower-income individuals have a higher MPC (marginal propensity to consume) than higher-income individuals. Still, I leave it to our readers to come up with their own conclusions. I appreciate your insightful comments.