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> The problem is that you are invoking a crude theory in a simplistic fashion that has with very little predictive power over the real world. I appreciate the
by acdha 2y ago
> The problem is that you are invoking a crude theory in a simplistic fashion that has with very little predictive power over the real world.
I appreciate the mix of unwarranted condescension with the assertion that the theory that sudden tariffs cause sudden price increases doesn’t have predictive value, when basically every sober analyst predicted what we are seeing now.
It’s not exactly a secret that prices fluctuate seasonally but what we’re seeing now is spread across the entire economy, suddenly, and in sectors which do not normally experience that seasonal volatility.
- littlestymaar 2y ago> what we’re seeing now is spread across the entire economy, suddenly Including in sectors that aren't affected by tariffs at all, that's the thing. > the assertion that the theory that sudden tariffs cause sudden price increases doesn’t have predictive value, when basically every sober analyst predicted what we are seeing now. You are misunderstanding. Tariffs will cause price increase with certainty. But so will lowering the USD value on FX markets, and so will adding massive uncertainty to businesses (including, but not limited to, the prospect of higher inflation in the near future), etc. Tariffs will cause price hikes, but attempting to measure tariffs effect by observing price variations simply cannot work. Real life prices are influenced by much more than just supply and demand.