Trump either lies or misunderstands tariffs. The American public is paying the costs.
New study from economists at NYFed, Princeton, & Columbia: "using standard economic methods, we find that the full incidence of [Trump's tariff policy] falls on domestic consumers, with a reduction in U.S. real income of $1.4B per month by the end of 2018" https://t.co/MPoSJTGipQ pic.twitter.com/4Xgfuzu8yb
— Catherine Rampell (@crampell) March 2, 2019
Another just-updated trade war paper by leading economists also finds 100% pass-through of US tariffs to consumer prices, slightly smaller DWL https://t.co/aG3b4gZ3Gh HT: @tylercowen pic.twitter.com/T6gctJUUwu
— Douglas Irwin (@D_A_Irwin) March 4, 2019
Why, it's almost as if tariffs not only impose immense economic costs but also fail to achieve their primary policy aims and foster political dysfunction along the way. https://t.co/1gNVSG69hN
— Peter Suderman (@petersuderman) March 5, 2019
Yep. But honestly China’s slowdown would have happened anyway. And this still would’ve generated a similar trend in results. The bigger lesson is that a structural readjustment of the US-China trade balance requires far more than silver bullet mega purchases of soybeans https://t.co/I4Hp2ByEwN
— Steve Clemons (@SCClemons) March 7, 2019
Sad! 