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Economists are wrong on tariff impact to the economy. The theft from Americans has already begun. [1]
['This Content Is Not Subject To Review Daily Kos Staff Prior To Publication.']
Date: 2025-04-09
There was a recent news story from ABC News, that an economist had estimated the impact of tariffs to a household to be between $4000-$20,000.
I do not know how this impact was calculated. But I doubt if it took two other factors into consideration. First is at large stores will or have already adjusted the price on items on the shelf to reflect a possible tariff increase. I know this first hand because I just saw the mark up stickers in one of the larger chains in the Midwest area. You will notice in the photo above that one item is priced at $80 and another item is priced at $85. However, the items have the exact same stock number and identifier code. So what is the difference?
It did beat me until it was pointed out the photo shows the impact of Inventory growth. But I doubt if anyone does just slap a new sticker on every package regardless of when it joined the inventory. (A tip of the hat to user Al Folker.)
In addition, it was pointed out. That price is better adjusted like this very very seldom, if ever return to the base price. I’m old enough to remember the sugar shortage back in the late 70s when the price of Coca-Cola went up because of the lack of sugar. Of course it was mentioned at that time that the price would go down once the sugar shortage was addressed. 50 or 60 years later, we must still be in a sugar shortage, according to Coca-Cola.
It didn’t happen that much after Covid shortages (although certain industries modified their package sizes and contents to reflect a change, usually smaller packages for just a small reduction in the price.)
Second, I doubt very much if economist have calculated the impact of those tariff and other assorted increases on the household budget, including the massive increase that will occur in state sales tax. Since there are states who charge tax on anything that is sold, from groceries to cars, that is not an insignificant increase in the financial burden of any household.
Finally, as userAl Folker pointed out prices will not go down because of the lack of foreign competition. And probably the resulting lack of imports will result in shortages which always mean higher prices.
So the grifter of America, has opened the door to other large and small grifters in America. I understand that large chains and others cannot individually increase each item associated with a tariff, but altogether the whole concept has allowed a huge rip off of the American consumer thanks to ALL THE MEMBERS OF THE REPUBLICAN PARTY.
That is how this should be portrayed not as a Trump tariff, but as a TAX INCREASE BY THE REPUBLICAN PARTY ON ALL AMERICANS.
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