Good read on tariffs and similarity to the depression

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I B Freeman

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I am not predicting a depression although there is no question that the growth in our economy will slow as more household income is used to pay the higher prices these tariffs will cause over.the next year.

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I B Freeman

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Dance for me clown!!!

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It's the 30's all over again.

Unusual take.

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IP Freely will be jumping off a building?

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The depresssion had already started by then.

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And even if one does not necessarily buy into that - certainly the most significant precipitating event (the stock market crash) had already happened by then.

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BTW Ford announced they were eliminating 20,000 jobs.

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So.

“Yesterday, we told our employees that we were in the early stages of an organizational redesign of the global salaried workforce,” Karen Hampton, a company spokeswoman, said in an interview Friday. The goal is “that gradually you’re getting a wider, flatter organization that is really designed for speed. Inevitably, we expect that to result in some reductions, but at this point there’s not a target.”

Ford, beset with an aging model lineup, fell behind Fiat Chrysler Automobiles NV -- as well as General Motors Co. and Toyota Motor Corp. -- in U.S. sales last month for the first time in a decade. Investors are stampeding out of its stock, which has fallen 27 percent this year, and its credit rating is now one step above junk.

“There are areas of our business that need to become more fit and certainly this process will also help them do that,” Hampton said. “So you would anticipate those areas of the company to maybe see more reductions than others.”

And the impact of the tariffs have not hit the economy yet as they have only been in place three weeks AND the planned tariffs in January are 2.5 times higher.

So for decades, US Presidents and Congress have effectively allowed our economy to be radically reshaped from a manufacturing based economy to a service/consumer based economy. Jobs were exported oversees, wealth pushed oversees, tax base eroded, trade deficit up, national debt up, etc.

The current President decides to go a different route and impose tariffs as a means of reversing some of this course. Clearly, this won’t be reversed overnight; however, news out of China supports that the policies are negatively impacting their economy and well, look at our economy.

You continue to harp on the tariffs because you only want to see this as a tax to consumers without understanding that folks will gladly pay more if it means greater long term job and economic stability. At least most sane people will do so. This isn’t a short term fix and it’s about leveraging the Chinese and others in a different direction.

Tax credits yesterday, tariffs today. It must be Christmas for you.