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39 sats \ 2 replies \ @freetx 9 Apr \ parent \ on: China announces 84% retaliatory tariffs on US goods econ
Yep. Its interesting watching the Mainstreet vs Wallstreet dynamic playout. Mainstreet (ie. middle-class) is still largely supporting the tariffs as they realize their only hope is to get meaningful jobs again.
Mainstreet knows that even if the stock market goes up 4x over the next 20 years, that basically doesn't represent any gain to them. Their just going to get inflation with lower job opportunities.
The corporate press is screaming about "tariffs will be paid by consumer" and they are largely correct. However, they don't mention the other side. We are basically in a situation of do you rather: (a) Inflation with lower job opportunities or (b) Inflation with higher job opportunities.
Mainstreet would prefer to pay $20/doz eggs and earn $30/hr....over the status quo which is $20/doz eggs and earn $12/hr + crushing student loan debt + high home prices.
"tariffs will be paid by consumer"
I'm not even granting them that, although it's obviously partly true. There are good reasons to expect the tax incidence to fall heavily on the exporters. Prices will certainly rise to some extent, but I expect it will be much less than full pass through.
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the best way to help Main Street is to eliminate taxes on business (i.e. corporate tax)
doing so will encourage firms to stay home and foreigners to set up shop in Main Street USA
eliminating or reducing corp taxes will encourage in-sourcing and discourage outsourcing
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