Why inflation may persist

[Harpy Eagle]

Tariffs impact prices. Tariffs don't cause inflation.

what is inflation other than the rise in prices?

 

[Care4all]

Yet you do not seem to have any clue the causes.

Milton Friedman: It is always and everywhere, a monetary phenomenon. It's always and everywhere, a result of too much money, of a more rapid increase in the quantity of money than an output.

In the same post where I said tariffs cause income growth.

You think tariffs cause income growth? LOL!

You think I said tariffs have no impact? I didn't.
Tariffs impact prices. Tariffs don't cause inflation.

Does the prices of goods go up in price with tariffs? Yes!

Why is that not inflation?

 

[Toddsterpatriot]

what is inflation other than the rise in prices?

Inflation is a rise in the general price level.
If the price of everything from China goes up, that's not inflation. Sorry.

 

[Toddsterpatriot]

Does the prices of goods go up in price with tariffs? Yes!

Why is that not inflation?

Because if the price of one thing goes up, people have less
to spend on everything else, so their prices drop.

 

[Toddsterpatriot]

Their customers will have less money to spend on other things, right?

True, except they will also gain income.

Tariffs mean people will have less to spend on non-tariff goods.
How does that lead to a gain in income?

Prove your "point".

 

[Harpy Eagle]

Because if the price of one thing goes up, people have less
to spend on everything else, so their prices drop.

more than one thing comes from China. Seems you should know this.

 

[Toddsterpatriot]

more than one thing comes from China. Seems you should know this.

inflation: a general increase in prices and fall in the purchasing value of money.

You should know this.

 

[Harpy Eagle]

True, except they will also gain income.

Tariffs mean people will have less to spend on non-tariff goods.
How does that lead to a gain in income?

Prove your "point".

Income in general goes up each year, not because of inflation nor tariffs, but because of the nature of our system.

 

[Harpy Eagle]

inflation: a general increase in prices and fall in the purchasing value of money.

You should know this.

yes, and if everything coming from China is more expensive, that will lead to a general increase in prices. While it is true people will turn to the less expensive non-Chinese products, that will cause a shortage of said non-Chinese products which will lead to price increases. Not to mention, many non-Chinese products are already more expensive than their China made counterparts so a switch to them is an automatic raise in what people are paying for a product.

 

[westwall]

True, except they will also gain income



And yet we have all witnessed the price of everything going up substantially over the last few years. And you seem to think a 100% tariff will have no impact. I am not sure why you think that

Oh? How do workers gain income?

 

[Toddsterpatriot]

Income in general goes up each year, not because of inflation nor tariffs, but because of the nature of our system.

View attachment 963587

Income in general goes up each year, not because of inflation nor tariffs

Thanks for admitting your error.

 

[Toddsterpatriot]

yes, and if everything coming from China is more expensive, that will lead to a general increase in prices. While it is true people will turn to the less expensive non-Chinese products, that will cause a shortage of said non-Chinese products which will lead to price increases. Not to mention, many non-Chinese products are already more expensive than their China made counterparts so a switch to them is an automatic raise in what people are paying for a product.

yes, and if everything coming from China is more expensive, that will lead to a general increase in prices.

Why? If I spend more on Chinese goods, I have less to spend on American goods, not more.

If I spend $20 more on Product A, I have $20 less to spend on Product B. That's a wash.

 

[Toddsterpatriot]

Oh? How do workers gain income?

Tariffs, apparently.

 

[westwall]

Tariffs, apparently.

The harpy is your typical leftist, completely ignorant of economics.

 

[otto105]

The last two aren't inflationary.

However, one thing you didn't mention that is definitely inflationary is de-globalization. America is an expensive place to build things. If you want to build more in America, prices are going to rise.

Also, tariffs are highly inflationary. This should be obvious.

Also, removing 11 million workers from America would be inflationary.

 

[Harpy Eagle]

Income in general goes up each year, not because of inflation nor tariffs

Thanks for admitting your error.

I made no error, you did by adding to my words what was not there.

But you are not the type to ever admit to such a thing, so congrats on your victory.

yes, and if everything coming from China is more expensive, that will lead to a general increase in prices.

Why? If I spend more on Chinese goods, I have less to spend on American goods, not more.

If I spend $20 more on Product A, I have $20 less to spend on Product B. That's a wash.

Product A will now be $30, as well product B, so you either spend more or you go without...just like what we have seen the last couple years....or have you not noticed?

 

[Toddsterpatriot]

I made no error, you did by adding to my words what was not there.

But you are not the type to ever admit to such a thing, so congrats on your victory.



Product A will now be $30, as well product B, so you either spend more or you go without...just like what we have seen the last couple years....or have you not noticed?

I made no error,

You admitted income does not increase because of tariffs.
After ......

Product A will now be $30, as well product B, so you either spend more or you go without

Exactly! It's not an increase in the general price level if you have no money and you go without.

 

[Toddsterpatriot]

Also, removing 11 million workers from America would be inflationary.

All those 11 million illegals Biden allowed in are working? Link?

 

[otto105]

All those 11 million illegals Biden allowed in are working? Link?

40% of Wisconsin's dairy labor is done by migrants. What do you think will happen if they're forced out.

 

[Toddsterpatriot]

40% of Wisconsin's dairy labor is done by migrants. What do you think will happen if they're forced out.

How many of those arrived under Biden?