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Trump’s tariffs raised prices and led to lost American jobs: Federal Reserve Report


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Trump’s trade war raised prices for consumers and hurt the manufacturing industry, according to a report from economists on the Federal Reserve Board.

 

“The first comprehensive estimates” of the trade war’s effect on American manufacturers show that the tariffs have hurt the industry more than they helped, wrote Aaron Flaaen and Justin Pierce, two senior economists at the Federal Reserve’s Industrial Output Section.

 

“We find that U.S. manufacturing industries more exposed to tariff increases experience relative reductions in employment as a positive effect from import protection is offset by larger negative effects from rising input costs and retaliatory tariffs,” the report said.

 

In short, the economists concluded that the tariffs gave a “small boost” to manufacturers, which was “offset by larger drags from the effects” of rising costs and retaliatory tariffs.

 

 

Trump’s Tariffs Are Raising Prices and Slashing Employment http://bit.ly/2Q3E7Ru 

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The report looked at a wide range of effects on the impacted sectors. In some cases, the tariffs were simply contradictory. While import tariffs may have helped protect some manufacturers from foreign competitors, tariffs on imported materials have increased costs for those same companies. Retaliatory tariffs imposed by China and other countries in response to the U.S. tariffs further “put U.S. firms at a disadvantage in those markets,” Flaaen and Pierce wrote.

 

As a result, manufacturing employment fell, and consumer prices increased. The economists acknowledged that their analysis only examined short-term trends, while long-term trends could show different effects. Trump has argued that the tariffs provide leverage for ongoing trade negotiations, but extensive data thus far shows that his trade war has devastated manufacturers, farmers and other industries.

 

The economists cited extensive existing research showing that “the majority of U.S. tariff increases are absorbed by U.S. retailers” and are almost entirely passed on to consumers in price increases. Some studies have found that American companies which engaged in trade with China saw “lower stock returns and higher default risk.” The report also acknowledged the political implications of the trade war, citing a study which concluded that it could “explain a shift in voting away from Republican House candidates in the 2018 election.”

 

The report follows months of extensive reporting on the ongoing manufacturing recession. It confirms what thousands of manufacturing firms have been saying for months: Tariffs are having the opposite effect of what the president claimed.

 

“There’s been a lot of anecdotal evidence about how tariffs are behind the manufacturing slump. Now the Federal Reserve proves it, finding that the trade war is hurting the sector it was ostensibly supposed to help,” ProPublica reporter Lydia DePillis tweeted.  “The [White House] would say that it takes a while for supply chains to adjust, and manufacturers will recover as they find alternative input sources. Also theoretically, mounting pressure will eventually force the Chinese to knuckle under in a way that will rebalance global trade. Given that we haven’t yet seen the text of the Phase One trade deal with China that’s supposed to be signed imminently, that promise remains … theoretical.”

 

But the economists did not only find that the trade war is failing to help manufacturers. Their research suggests that tariffs simply do not work in any economy that relies on global supply chains.

 

“Our results suggest that the traditional use of trade policy as a tool for the protection and promotion of domestic manufacturing is complicated by the presence of globally interconnnected supply chains,” Flaaen and Pierce wrote. “While the potential for both tit-for-tat retaliation on import protection and input-output effects on the domestic economy have long been recognized by trade economists, empirical evidence documenting these channels in the context of an advanced economy has been limited.”

 

 
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Trump's lifetime track record of failed businesses and bankruptcies were a great indicator that he has no idea how any of this works. And, he is unteachable.

 

By this time he should know better, and do differently, but he doesn't. He still thinks that China et al are "paying tariffs" and that we are "taking in tariff money." He repeats this over and over.


People are suffering because this moron is making decisions he has no business making.

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Just now, benson13 said:

Trump's lifetime track record of failed businesses and bankruptcies were a great indicator that he has no idea how any of this works. And, he is unteachable.

 

By this time he should know better, and do differently, but he doesn't. He still thinks that China et al are "paying tariffs" and that we are "taking in tariff money." He repeats this over and over.


People are suffering because this moron is making decisions he has no business making.

Trump has never filed for bankruptcy...

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Just now, benson13 said:

How does someone BANKRUPT a Casino?

 

 

let alone 3 CASINOS

All casinos are going through transitions over the last 30 years...

 

Trump's a billionaire...

And he's very successful.

 

 

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8 minutes ago, Z09 said:

And we have record low unemployment thanks to Trump...

beanie always leaves the best part out.   :)

 

"The U.S. economy is chugging along as consumer confidence hit its fourth-straight weekly increase, according to new Economic Intelligence data from Morning Consult." 

 

https://morningconsult.com/2019/11/20/consumer-confidence-continues-four-week-climb/

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1 minute ago, benson13 said:

He's a cheap Lying ConMan Zhannity.....Geeezzzzzzzzzzzzzzzz.....wish I could have seen your posts defending bush 24/7....or Airhead palin

Hey Benson

 

Every president and politician has been complaining about China..

We finally have someone trying to change things and people like you are hoping it fails..

 

That's the mindset of you and the liberal voters...

 

Pray for a school shooting

A terrorist attack

Maybe a Wall Street collapse...

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4 minutes ago, benson13 said:

Well what a surprise. Not. trump has no f --ing idea of how trade tariffs or anything else works and will not listen to experts. If he doesn't know something he thinks it's not worth knowing. A criminal & a fool

Suppose you tell us how they work and then tell us what Democrat has done a better job...

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The world didn't take America's jobs, America let the world have them without investing in a path to new ones because politicians were more interested in tax cuts, and corporate America was more interested in short term gains.

That's the part of this sad story you won't hear from the Trump administration.

 

 

What happened to American jobs in the 80s - Business Insider

www.businessinsider.com/what-happened-to...

The White House is only telling you half of the sad story of what happened to American jobs. The problem didn't start in the 1990s, it started in the 1980s, when Ronald Reagan — a hero of the Trump administration — was president, and neoliberal economics were first making their mark on policy.

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Just now, benson13 said:

The world didn't take America's jobs, America let the world have them without investing in a path to new ones because politicians were more interested in tax cuts, and corporate America was more interested in short term gains.

That's the part of this sad story you won't hear from the Trump administration.

 

 

What happened to American jobs in the 80s - Business Insider

www.businessinsider.com/what-happened-to...

The White House is only telling you half of the sad story of what happened to American jobs. The problem didn't start in the 1990s, it started in the 1980s, when Ronald Reagan — a hero of the Trump administration — was president, and neoliberal economics were first making their mark on policy.

But we have record low unemployment...

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I ALWAYS vote for the Democrat

 

 

 

What happened to American jobs in the 80s - Business Insider

www.businessinsider.com/what-happened-to...

The White House is only telling you half of the sad story of what happened to American jobs. The problem didn't start in the 1990s, it started in the 1980s, when Ronald Reagan — a hero of the Trump administration — was president, and neoliberal economics were first making their mark on policy.

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Just now, Zaro said:

Read the report and get yourself up to speed on Trump's* incompetent

 

* impeached

Read this.....

 

Zaro 

Senior Member

 

47,556 posts

Gender:F

Location:San Antonio

 

 

The happiest day of my life was 9/11

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2 minutes ago, benson13 said:

trump is like raygun to these Morons....and they'll be paying for their Idiocy the rest of their lives

Record low unemployment...

Millions less on food stamps..

Record Wall Street

Wages up..

 

Aren't you excited Benson?

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