To Tariff or not; that is the Question.

In our previous Discourse, we discussed Deficits, what they are and whether or not they are desirable. We also discussed the inter-dependence of the two deficits in the context of the macro economy.

In this Discourse, we consider tariffs – the principle method President Trump is intent on using to stem or reverse the trade deficit. We look at whether tariffs will likely reduce imports and thus, perhaps reduce the trade deficit. We also explore whether tariffs might have an effect on prices of consumer goods. We furthermore look at whether tariffs enhance or degrade the macro economy.

Warning: As was true for the essay which investigated deficits, this essay is equally “technical.” It is, however, also written for people with no economics training. With some patience, the reader should be will, I think, gain some understanding of ideas that, bolstered by the discussion we will have, allow the reader…