Inflation’s “sticky”. It took 5 years to get rid of COVID-related inflation, and it went up for quite a while before starting to go down. This is quite a bit more substantial, and it will take a long time for the effects on the overall broader economy to recede. The inflation itself will take about 1.5 years to fully work it’s way through the system, but there’s also going to be a larger scale contraction on GDP, which will very likely put the US and many of it’s trade countries into recession as well. This will likely have a negative impact on wages. The US is also very much going to have a supply problem, which is going to then also put upward inflationary pressures on a lot of products.
Anytime a government interferes or puts in measures that affect trade, positively or negatively, it throws everything out of whack.
Because of tariffs suddenly disapearing, there could actually be deflation when Trump is gone…
Inflation’s “sticky”. It took 5 years to get rid of COVID-related inflation, and it went up for quite a while before starting to go down. This is quite a bit more substantial, and it will take a long time for the effects on the overall broader economy to recede. The inflation itself will take about 1.5 years to fully work it’s way through the system, but there’s also going to be a larger scale contraction on GDP, which will very likely put the US and many of it’s trade countries into recession as well. This will likely have a negative impact on wages. The US is also very much going to have a supply problem, which is going to then also put upward inflationary pressures on a lot of products.
Anytime a government interferes or puts in measures that affect trade, positively or negatively, it throws everything out of whack.
That’s assuming that greedy companies don’t just keep prices once they’re gone.