Snobdds
Super Member
I'm no economist but something's not adding up. I get that adding tariffs reduces demand because it increases prices. How do increased prices lead to lower inflation? Isn't increased prices the very definition of inflation?
Roughly a 10 point tariff jump cuts inflation about 0.5 percentage points while adding about 0.3 points to unemployment.
Same CPI, fewer paychecks.
Tariffs don't lead to inflation, they lead to higher unemployment in low skilled jobs. But so does AI.
So we can big mad at tariffs, when AI does the exact same thing.