(02-04-2025, 12:30 AM)Jag149 Wrote: One thing for sure tariffs do not cause inflation. India has more tariffs than any other country and are not experiencing inflation. This line of argument is fear mongering in an attempt to scare people. They are like most things properly managed.

India had 5.22% inflation for 2024, compared with only 2.9% in the US. Like the US, the central bank in India manages inflation with interest rates, and their repo rate is up at 6.5%, compared with only 4.25% in the US.

So they do pay the price for their tariffs. But they have also been reducing their tariffs for years now. Not surprisingly, the reduction in tariffs coincided with India's emergence from a developing nation to a global economic power. Because when an economy grows that large, it can't afford to have protectionist or isolationist policies anymore.

Quote:So why all the nervousness? Well, tariffs are collected and go the the government. It is a cost just like anything else. Actually it is a use cost. The more you buy or use the more of it you pay. Higher income people buy more stuff and use more resources than lower income people. It actually has a greater effect on higher income people.

There is "duped," and then there is "tariffs-are-actually-a-progressive-tax-duped."

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