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42 sats \ 1 reply \ @krispy_donkey 3 Oct \ on: US steel tariffs push construction equipment prices up across the board econ
Hmm, seems inflationary. What is the planet brain scheme at work here with these tariffs? What will the knock on effects of this be, excepting of course, more inflation?
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158 sats \ 0 replies \ @Undisciplined 3 Oct
I've been skeptical that we'll ever get the promised benefits, but they do potentially exist. For instance:
  1. Tariffs are less destructive and inflationary (in the price sense) than most other taxes. So, if other taxes are reduced by the same amount as the tariffs are raised, we could end up in a less inflated economy.
  2. Tariffs as negotiating chips: if temporary tariffs can convince other countries to reduce their trade barriers, then we could end up with a freer trade situation in the long-run.
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