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

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][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]

Yes, this is the real reason for all of this. Lower interest rates are at the heart of Elon's project. That is his main goal.

All the DOGE silliness, like putting thousands of people out of work and terrorizing them and destroying the government, is just a fun effect. [/quote]

I thought lower mortgage rates (lower cost of housing) and lower inflation rates were a good thing though? Do Dems want expensive housing and high inflation now? I can’t keep up.[/quote]

Lower mortgage rates generally don't lead to a lower cost of housing, because prices go up. They might come down if tariffs lead to a recession, but that's not really the way to make housing more affordable.[/quote]

Also. The tariffs on Canadian lumber (which is an input for housing starts) will increase house prices.

Yes. Trump has it all covered: tariffs to make the inputs higher and inflation to insure dollars don’t buy as much. Quite the economy. [/quote]

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