Trump's Anti-Inflation Plan Risks Even More Price Hikes

Saturday, July 20, 2024

Trump's platform -- including tax cuts, tariff increases and a crackdown on immigration -- would, in the view of many economists and investors, stoke price pressures.

Posted by lamplighter at 09:31 AM | 13 COMMENTS | permalink | Comment on This Entry |

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... The irony is, Trump's platform -- including tax cuts, tariff increases and a crackdown on immigration -- would, in the view of many economists and investors, stoke price pressures. As the Federal Reserve prepares to start monetary easing, the potential shift in an array of policies looms as a risk for sustained interest-rate cuts in 2025.

"On their face, the stated policies would bring at minimum a significant burst of inflation," said Julia Coronado, the founder of MacroPolicy Perspectives LLC and former Fed economist. ...

#1 | Posted by LampLighter at 2024-07-18 01:12 PM | Reply

A lot of the economists support Biden. Enough said.

#2 | Posted by NewOrleans at 2024-07-20 10:25 AM | Reply

Trump was the worst jobs potus since Hoover. Nuff said.

#3 | Posted by reinheitsgebot at 2024-07-20 10:38 AM | Reply

... Trump's platform -- including tax cuts, tariff increases and a crackdown on immigration -- would, in the view of many economists and investors, stoke price pressures. ...

Yup.

Who pays for tariffs? The companies typically pass on the cost of tariffs to consumers via higher prices.

Why do farming corporations prefer to hire immigrants? Lower cost of labor. The higher cost of non-immigrant labor will be passed on to consumers via higher prices.

#4 | Posted by LampLighter at 2024-07-20 10:43 AM | Reply

Why do farming corporations prefer to hire immigrants? Lower cost of labor. The higher cost of non-immigrant labor will be passed on to consumers via higher prices.

And that's not accounting for decreased supply as I guarantee there aren't enough white Americans out there willing to do hard manual labor on farms.

#5 | Posted by jpw at 2024-07-20 11:05 AM | Reply

correct....which is why a "crackdown on immigration" is really just a campaign promise because voters are woefully ignorant on the importance of immigrants to the ag industry. (other industries as well).

This has been the same rhetoric we've been hearing for 40+ years.

#6 | Posted by eberly at 2024-07-20 11:17 AM | Reply

"there aren't enough white Americans out there"

Interesting take.

#7 | Posted by sentinel at 2024-07-20 11:20 AM | Reply

-Why do farming corporations prefer to hire immigrants?

Most of our clients are hiring H2A workers from South Africa.

It's regulated and rules are followed. It's a good program.

#8 | Posted by eberly at 2024-07-20 11:20 AM | Reply

The thing is if we had a solid border plan, as well as an immigration plan and that caused prices to go up. I'd pay it. We already are paying more and don't have any of the above.

#9 | Posted by kwrx25 at 2024-07-20 11:58 AM | Reply

@#9 ... The thing is if we had a solid border plan, ...

The problem is less the border and more those who hire the immigrants.

An excerpt from the Border Patrol Union webpage that was deleted during fmr Pres Trump's term:
web.archive.org

Walls and fences are temporary solutions that focus on the symptom (illegal immigration) rather than the problem (employers who knowingly hire illegal aliens).

Walls and fences are only a speed bump. People who want to come to the United States to obtain employment will continue to go over, under, and around the walls and fences that are constructed.

Walls and fences will undoubtedly result in an increase in fraudulent documents and smuggling through the Ports of Entry.

Walls and fences do not solve the issue of people entering the country legally and staying beyond the date they are required to leave the country, a problem which will undoubtedly increase as more walls and fences are constructed.

[emphasis mine]

#10 | Posted by lamplighter at 2024-07-20 12:09 PM | Reply

@#9 ... that caused prices to go up. I'd pay it ...

My guess would be that most who favor fmr Pres Trump's immigration rhetoric would just complain about the increased inflation and try to blame the increased inflation on the Democrats.

#11 | Posted by LampLighter at 2024-07-20 12:11 PM | Reply

A solid border and immigration plan would expand the number of legal immigrants allowed per year so would not significantly impact prices a small increase as legal immigrants will not want to work as cheaply as illegals but not that much.

A plan trying to "shut the border" will raise prices and not actually be a solid border and immigration plan. As with most issues the bumper sticker slogans sound fantastic but the real world is a bit more wibbly wobbly than can fit on a bumper sticker.

#12 | Posted by TaoWarrior at 2024-07-20 01:38 PM | Reply

@#12 ... A plan trying to "shut the border" ...

Fmr Pres Trump's plan is not just to shut the border, but also deport the immigrants in the US.

A common GOP bumper sticker saying notes that immigrants are taking jobs from Americans.

That is wrong.

What is actually occurring is that American companies and corporations are giving jobs to immigrants instead of giving those jobs to Americans. The immigrants are not taking jobs from Americans, American companies and corporations are giving the jobs to immigrants instead of Americans.

Let me say that again, as #10 notes ...

American companies and corporations are choosing to give jobs to immigrants instead of giving those jobs to Americans.

#13 | Posted by LampLighter at 2024-07-20 06:08 PM | Reply