Trump says planned April 2 tariffs will 'start with all countries'

[Bernardo de La Paz]

13. Great Depression caused by over-production, not tariffs. Tariff taxes made it worse & longer

This is different. I think tRump tariff taxes will be the main cause of a coming recession or worse. Mass firings in the government sector up and down the line will make it worse. ICE-y disruptions in the labour market will make it worse. Reduced government spending will make it worse.

Swapping out income taxes and putting in tariff taxes is regressive since upper income classes spend money on untariffed things like vacations and real estate and artwork and plastic surgery. Poor people have to shop at Walmart, etc and spend more of their income on tariffed goods.

Poor and middle class people are the engine of the economy, which after all is all about money in motion. When poor people get money they put it into motion immediately to pay debts and rent and buy to replace something they've been wanting to replace for a year.

When tariff taxes are raised on imports, they cause price rises on domestic product too, because of the profit motive. Used cars are going to have a jump in prices.

Tariff taxes mean that the dollars in the economy buy fewer units. Fewer units sold means fewer sales people, few warehouse people, fewer truckers. These all have ripple effects.

Tariff tax revenue will not meet tRumpian expectations. tRump will balloon the deficit because compliant RepubliCONners will pass a big income tax cut budget (disproportionately for the rich). And then there will need to be increased government payments (like unemployment and stimulus cheques signed with great fanfare by tRump) so that tRump won't lose half his base. That will also balloon the deficit.

tRump also wants to devalue the dollar to try to decrease the money the US owes internationally. That will put further downward pressure on the stock market as investors flee to Europe and Canada, despite their tariff tax burdens imposed by tRump.