Tariffs and Potential Inflation

[brymoore]

You taking into account 16% inflation into the performance you are smiling about?

2021-2024 was 16% cumalative inflation
2016-2020 was 8%

Makes a big difference in ROI.

The $3T in deficit spending that occurred in 2020 would create inflation in 2021 and later years.

 

[Nick87]

The $3T in deficit spending that occurred in 2020 would create inflation in 2021 and later years.

That can't be...inflation is down.

 

[SAJ-99]

You taking into account 16% inflation into the performance you are smiling about?

2021-2024 was 16% cumalative inflation
2016-2020 was 8%

Makes a big difference in ROI.

S&P nominal total return
Since 11-24-2019 103.85%
Since 1-1-2021 67%

I'm not worried. The billionaires in charge have my back. If they have to make a choice between those returns and 16% or 20% cumulative inflation and the average American's pocketbook, I know what they will choose.

That can't be...inflation is down.

You are confusing nominal prices with the rate of inflation.

 

[Forkyfinder]

The $3T in deficit spending that occurred in 2020 would create inflation in 2021 and later years.

No disagreement. The spending that happenened in 2021 made it worse.

 

[Nick87]

You are confusing nominal prices with the rate of infation

Maybe or maybe I'm just casting bait.

 

[Bonasababy]

Reality bites, for those who refuse to accept it....

https://www.reuters.com/world/us/does-trump-really-want-compare-now-four-years-ago-2024-10-30/

I will ask again, what metric to people want to return to?

 

[Bonasababy]

There's a video that explains it better than I can, but I can't find it. But if in 2021 you gained 18 lbs 2022 you gained 9lbs and in 2023 you gained 4 lbs

Your not up 4lbs your up 31lbs

 

[Rie Bread]

Reality bites, for those who refuse to accept it....

https://www.reuters.com/world/us/does-trump-really-want-compare-now-four-years-ago-2024-10-30/

I will ask again, what metric to people want to return to?

$5 ft longs ? $1 mcchickens?

 

[Sytes]

Interesting content shared by John F. Kennedy when he signed Congress' Trade Expansion Act that gave Presidential powers to set tariffs:

"Today I am signing H.R. 11970, the Trade Expansion Act of 1962.

This is the most important international piece of legislation, I think, affecting economics since the passage of the Marshall plan."

Since, I bet he's rolled in his grave too many times to count.

Biden's Statement regarding his administration's tariffs (May 14, 2024);

"American workers and businesses can outcompete anyone—as long as they have fair competition. But for too long, China’s government has used unfair, non-market practices. China’s forced technology transfers and intellectual property theft have contributed to its control of 70, 80, and even 90 percent of global production for the critical inputs necessary for our technologies, infrastructure, energy, and health care—creating unacceptable risks to America’s supply chains and economic security. Furthermore, these same non-market policies and practices contribute to China’s growing overcapacity and export surges that threaten to significantly harm American workers, businesses, and communities."

• The tariff rate on certain steel and aluminum products under Section 301 will increase from 0–7.5% to 25% in 2024.
• The tariff rate on semiconductors will increase from 25% to 50% by 2025.
• The tariff rate on electric vehicles under Section 301 will increase from 25% to 100% in 2024.
• The tariff rate on lithium-ion EV batteries will increase from 7.5%% to 25% in 2024, while the tariff rate on lithium-ion non-EV batteries will increase from 7.5% to 25% in 2026. The tariff rate on battery parts will increase from 7.5% to 25% in 2024.
• The tariff rate on natural graphite and permanent magnets will increase from zero to 25% in 2026. The tariff rate for certain other critical minerals will increase from zero to 25% in 2024.
• The tariff rate on solar cells (whether or not assembled into modules) will increase from 25% to 50% in 2024.
• The tariff rate on ship-to-shore cranes will increase from 0% to 25% in 2024.
• The tariff rates on syringes and needles will increase from 0% to 50% in 2024. For certain personal protective equipment (PPE), including certain respirators and face masks, the tariff rates will increase from 0–7.5% to 25% in 2024. Tariffs on rubber medical and surgical gloves will increase from 7.5% to 25% in 2026.

Crickets then...


Since,