Tariffs - Method to the Madness?

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Joe Leote

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Apr 4, 2025, 9:37:38 PMApr 4
to Money Group
Reciprocal Tariffs general analysis:


Trump's possible tariff strategy:


I watched the strategy video last night. One expert on the television said the tariff is like increasing corporate taxes by $600 bn and the Republicans in Congress will look to reduce corporate taxes to offset those tariff costs and government revenue. Another expert said the prior Trump tariff reduced the steel industry in the United States instead of increasing domestic production. It is hard to predict the outcome of political-economic disruption because the agents and institutions don't always interact according to the government's plan! 

I would use the World War 2 strategy for industrializing during the war and building up the national infrastructure after the war. Impose progressive taxes on the rich in the United States and give them tax credits for approved investments such as modernizing utility companies, building out the smart grid, or building modern factories necessary to reshore key industries under government industrial policy. Progressive taxes are the stick and approved investment opportunities are the carrot.

Joe
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