Reply to Trump tariffs: ruin U.S. economy until 2040

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Serious question.  These tariffs are going to generate huge revenues for the Federal government.  Where does the money go and what does it get spent on?  Is there a general account for customs and tariff revenues?[/quote]

No they won’t. Demand will dry up. [/quote]

Exactly, these tariffs will have a negative effect on purchases, and this effect will vary demanding on how elastic/inelastic demand is for a certain good. For goods with an inelastic demand (oil I would assume), the demand will fall but by a smaller percentage that the increase in price (ie 25% increase in price may lead to a 20% decrease in demand). However, since demand for many good is also elastic, then the decrease will be larger than the price changes (say a 25% increase in price will lead to a 30% change in demand).

These tariffs may raise some revenue, but it will be way less and will be offset by the decrease in demand. Economics 101. The harm that this will do to the US and global economy overall is substantial. [/quote]

It will also cause inflation to plummet and the Fed will reduce rates, which will send the stock market skyrocketing.[/quote]

Tariffs are inflationary. If anything they will cause inflation to rise (since prices are higher) which will lead the Fed to pause the interest rate cuts they were doing. The stock market already tanked today, with more pain to come (if a certain support level is breached, I am thinking 570 for the SPY, then the algorithms will auto sell further plunging the stock market). We are headed for a recession, all due to the current administrations incompetence, and the stupidity of the average voter.[/quote]

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