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> That said, I'm willing to bet this will finally put the nail in the inflation coffin. Taking money away from consumers and "burning it" by returning it to the
by cyberax 2y ago
> That said, I'm willing to bet this will finally put the nail in the inflation coffin. Taking money away from consumers and "burning it" by returning it to the government is the best way to deal with inflation.
Nope. Tariffs are associated with higher inflation, as consumers have to pay more. Over long term, if tariffs depress the economic growth and cause a recession, they indeed _might_ lower the inflation.
- Auracle 2y agoThere's inflation and there's inflation, and it's unfortunate we don't have separate terms. If you had inflation typical of what we had during/after COVID with our economy being too hot with too much money floating around, tariffs would absolutely help. Preferably they'd be tariffs just on consumer products, and not things used for manufacturing. You'd raise them for a time and then lower them. It's essentially the same thing as raising interest rates. You're taking money out of the economy.