Timothy Birdnow

Consumer prices fell in March despite liberal prophecies that tariffs would lead to rising inflation for consumer goods and services.

Prices fell because of pro-growth policies by this administration. Tariffs are, after all, taxes on foreign goods and while there can be and will be some localized inflation in the end there are more than one fish in the sea and we can buy from somebody else for most of what we don't make here - and we are increasing the number of factories and workshops making these things in the U.S.

Historically inflation rarely has occurred after raising tariffs.

The Left wants us to think that is the case because they advocate corplorate taxes and income taxes which can be weaponized (and have been) to promote societal change. Tariffs are pretty straight forward and cannot be used to get into the pockets and homes of Americans.

America had ONLY tariffs and excise taxes until the Income Tax was passed as a Constitutional Amendment. Before that there was no direct taxation, and that kept the federal government in check as it was always underfunded. The income tax gave the feds unlimited money and hence unlimited power. And to make sure nobody suggested "going backwards" to the pre-income tax era they demonized tariffs so nobody would dare promote them.

I'm not saying tariffs are actually good - they are taxes, after all. But I am saying we need not fear them. I think the prices dropping last month is just more proof of that assertion. If we do see inflation it will be because of the Federal Reserve ramping up the money supply. The Fed and their control of the money supply is what determines inflation or deflation. Inflation is a monetary problem, not a trade problem or a taxation problem.

The Great Depression was caused not by tariffs (as so often claimed) or "speculation" but by the Federal Reserve contracting the money supply almot thirty percent in two years. They strangled the economy, and probably on purpose to drive social change. America made a great leap leftward during the Depression and Americans got used to the era of big government and intrusive federal powers. I do not think that was just a "happy accident". Fascism was on the rise in Europe then and had already been experimented with in America under Woodrow Wilson. The Fascists were in charge of the Federal Reserve and knew this was the way to turn America Brown. (commies loved it "first Brown then Red".)

So maybe we'll see some inflation down the road, but thus far the numbers look pretty positive for Trumpenomics.

Posted by: Timothy Birdnow at 09:49 AM | Comments (2) | Add Comment
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