Fed Study Vindicates Trump: 150 Years of Evidence Shows Tariffs Lower Inflation

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“We find that a tariff hike raises unemployment

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Yay Trump!

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We find that a tariff hike raises unemployment and lowers inflation,”

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Oh, so demand destruction

So it's bad economic policy just for a different reason, great revelation there. Also is there a link?

Seems like a good time to copy and paste this email I received from a very large supplier just earlier this week:

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Partners and friends, I know it’s a busy time for everyone and I wish you a wonderful holiday season ahead. In the summer, I let you know we would hold prices through the end of 2025. We have, and I’m pleased to say we’ll honor that promise for the rest of the year. Unfortunately, the small price adjustment we made in June wasn’t enough to offset the significant cost increases we’ve faced. As a result, prices on many (redacted) products will increase in January. Because tariffs vary greatly between our sourcing countries, it’s impossible to make a simple flat rate increase like we did in the summer. So we're approaching this brand by brand and category by category, being as careful as we can. On average, prices will increase by about 5%. The full list of styles with price changes is available here. I know this isn’t welcome news. We have done all we can to pass on the smallest possible increase. Since tariffs were announced eight months ago, we’ve been working hard to minimize their impact on you. We have negotiated with our sourcing partners to lower prices. We moved products out of higher tariff countries, re-sourcing approximately 40% of our styles. And we absorbed a significant amount of costs ourselves. We hope this will be the only time we raise prices in 2026, but we need to see stability in tariffs before we can commit to that. It remains a dynamic time—you have our promise to always be transparent and do the right thing for you, our customers. As always, we appreciate your partnership. I know you have choices where you buy your apparel. We’ll continue to work every day to earn your trust and your business. Best,

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Oh, so demand destruction

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If they wont stop printing dollars

demand destruction is the only other possible mechanism

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If they wont stop printing dollars

demand destruction is the only other possible mechanism

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Good luck with that message the next election.

"We put you out of a job for your own good"

I can speak from anecdotal experience and here’s what I can tell you

Lumber imported from Canada has risen in price due to tarriffs

Also, windows with parts from China have increased.

I don’t see anything that has dropped in price as a result of levying a tarriff.

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But coffee and bananas

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Yea.

They are right and most people don’t understand this concept because they don’t realize prices and inflation are two different things. The previous administration spent 4 years screwing up the economy with retarded policies that contributed to 9% inflation. It’s going to take more than 12 months to unfrick ourselves from that.

People get really upset when they find out prices aren’t going to come down much, if at all. That’s why Bidens administration was such a disaster. Onshoring manufacturing is a great start and should create higher wages in the US but that doesn’t happen overnight.

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How hard is this to grasp for a small town ambulance chaser?

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Its the TDS