4 ms·
A tariff is a regressive tax. What that means is the poorer you are, the greater percentage of your income is going to tax. Combine that with the fact that the
by taylodl 2y ago
A tariff is a regressive tax. What that means is the poorer you are, the greater percentage of your income is going to tax. Combine that with the fact that the poorer you are, the more likely you are to spend the entirety of your income on goods and services and not invest. Putting these things together what can we conclude? Less money is going to goods and services. That's a recession. You don't have to have a Ph.D. in economics to see a pretty severe recession coming our way - entirely of our own making via poor policy.
- tim333 2y agoIt's looking a bit iffy with several things lined up at once. There are the Trump tariffs, plus Musk seems a bit obsessed with cutting spending and firing people, plus we were due a bit of a recession anyway from raising interest rates to reduce inflation plus equity and property prices are at high levels by historic standards, plus record consumer debt. It could add up to a big downturn if we're not lucky.