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Thread: Home Economy & Politics Federal Reserve The Fed GET EMAIL ALERTS Fed study finds Trump tariffs

  1. #1

    Fed study finds Trump tariffs backfired

    https://www.marketwatch.com/story/fe...red-2019-12-27

    President Donald Trump’s strategy to use import tariffs to protect and boost U.S. manufacturers backfired and led to job losses and higher prices, according to a Federal Reserve study released this week.

    “We find that the 2018 tariffs are associated with relative reductions in manufacturing employment and relative increases in producer prices,” concluded Fed economists Aaron Flaaen and Justin Pierce, in an academic paper.

    While the tariffs did reduce competition for some industries in the domestic U.S. market, this was more than offset by the effects of rising input costs and retaliatory tariffs, the study found.

    “While the longer-term effects of the tariffs may differ from those that we estimate here, the results indicate that the tariffs, thus far, have not led to increased activity in the U.S. manufacturing sector,” the study said.

    Tit-for-tat trade retaliation is an idea best relegated to the past, given the presence of globally interconnected supply chains, the Fed researchers found.

    The top ten manufacturing industries hit by foreign retaliatory tariffs were producers of: magnetic and optical media, leather goods, aluminum sheet, iron and steel, motor vehicles, household appliances, sawmills, audio and video equipment, pesticide, and computer equipment.

    The top ten industries hit by higher prices were: aluminum sheet, steel product, boilers, forging, primary aluminum production, secondary aluminum smelting, architectural metals, transportation equipment, general purpose machinery and household appliances.

    The researchers don’t measure the effects on business confidence resulting from the uncertainty regarding U.S. international trade policy. Many economists see this doubt about future government policy as a primary driver in the decline in business investment this year.
    More at link.
    Last edited by Zippyjuan; 12-27-2019 at 11:29 PM.
    Quote Originally Posted by Swordsmyth View Post
    We would be much better off if Republicans had had the instincts to be immigration hawks.
    Quote Originally Posted by Swordsmyth View Post
    The quality seems to have dropped significantly since I came here, I guess you get what you pay for.
    I am Zippy and I approve of this post. But you don't have to.



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  3. #2
    It's not over yet and the Federal Reserve is a lying enemy of America.
    Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

    Robert Heinlein

    Give a man an inch and right away he thinks he's a ruler

    Groucho Marx

    I love mankind…it’s people I can’t stand.

    Linus, from the Peanuts comic

    You cannot have liberty without morality and morality without faith

    Alexis de Torqueville

    Those who fail to learn from the past are condemned to repeat it.
    Those who learn from the past are condemned to watch everybody else repeat it

    A Zero Hedge comment

  4. #3
    Quote Originally Posted by Swordsmyth View Post
    It's not over yet and the Federal Reserve is a lying enemy of America.
    Thank you for the thoroughly documented rebuttal. I shall have to reconsider my opinion on the issue.

    "We are winning- just look at all those $billions in taxes we are collecting!" (from US consumers and businesses)
    Last edited by Zippyjuan; 12-27-2019 at 11:31 PM.
    Quote Originally Posted by Swordsmyth View Post
    We would be much better off if Republicans had had the instincts to be immigration hawks.
    Quote Originally Posted by Swordsmyth View Post
    The quality seems to have dropped significantly since I came here, I guess you get what you pay for.
    I am Zippy and I approve of this post. But you don't have to.



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