MAGA seems to think DJT has the magical ability to lower inflation, as if by simply pushing a button.
Going back to Trump's economic policies would exacerbate inflation for several reasons:
Going back to Trump's economic policies would exacerbate inflation for several reasons:
- Tariffs on imports: Trump has proposed imposing steep tariffs of up to 100% on imported goods, particularly from China. This would raise costs for businesses and consumers, fueling inflationary pressures.
- Tax cuts: Trump plans to extend his 2017 tax cuts, which would add $3.3 trillion to the deficit over a decade. Tax cuts increase consumer demand without boosting supply, stoking inflation.
- Immigration restrictions: Trump's plans for mass deportations of undocumented immigrants could worsen labor shortages, driving up wages and inflation.
- Weakening the Fed: Trump allies want to undermine the Federal Reserve's independence and ability to raise interest rates to combat inflation.
- Devaluing the dollar: Trump's former trade chief aims to devalue the U.S. dollar, which would make imports more expensive and stoke inflation.
- Increased spending: While promising spending cuts, Trump's policies like expanding fossil fuel production would likely increase federal spending, adding inflationary pressures.
