Tag Archives: tariffs

$817k Per Job

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From The New York Times:

“Former President Donald J. Trump is planning an aggressive expansion of his first-term efforts to upend America’s trade policies if he returns to power in 2025 — including imposing a new tax on “most imported goods” that would risk alienating allies and igniting a global trade war.”

The Former Guy is such a successful businessperson, and so rich, we should probably just trust that he knows what he’s doing.

The New York Times has the temerity to disagree with my assessment. They write:

“Evaluating the merits of Mr. Trump’s trade vision is complex because there could be multiple ripple effects, and he is seeking long-term changes. But many economic studies concluded that the tariffs he imposed as president cost American society more than the benefits they produced.

Research from economists at the Federal Reserve and the University of Chicago found that tariffs Mr. Trump imposed on washing machines in 2018 created about 1,800 jobs while raising the median prices consumers paid for new washers and dryers by $86 and $92 per unit. That spending added up to about $817,000 per job.”

Wait a minute. If the Former Guy is mistaken about tariffs, what else might he be getting wrong?

Thursday’s Required Reading

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1. Back to Church, but Not, Let’s Hope, Back to Normal.

“One way to think about this pause in our lives is as a rare—likely a once-in-a-lifetime—opportunity for a reset. We actually stopped, the one thing our societies have never heretofore done. Things ground to a halt, offering us the chance to examine our lives and our institutions. And now, if we want it, we have a chance to rearrange them.”

2. Stop Building More Roads. Dan, Dan, The Transportation Man has been saying this for years. Who knew he knew what he was talking about? For some reason, the authors fail to mention that the President has sporadically talked about investing in infrastructure, but not followed through at all.

3. Japan auto companies triple Mexican pay rather than move to US. I’ll take “What the President Won’t Talk About” for $500.

“Consumers will ultimately pay the price for inefficient production and increased component flow. U.S. research agency Center for Automotive Research estimates that 13% to 24% of all cars sold in the U.S. will be subject to tariffs. If automakers pass these costs on, prices will rise by $470 to $2,200.

The center also said U.S. car sales will drop by up to 1.3 million units annually due to the Trump administration’s trade policy — including sanctions on China. It estimates that 70,000 to 360,000 jobs will be lost, leading to a $6 billion to $30.4 billion reduction in gross domestic product.”

4. Two Chefs Moved to Rural Minnesota to Expand on Their Mission of Racial Justice. Such a hopeful story about social infrastructure. Great pictures on top.

5. This vertical farm could be the answer to a future without water. New Jersey isn’t the only place where farms of the future are starting to bloom.