Mastodawn

C.Mar 30, 2025

I'm with M. Grégoire; I don't buy "Modern Monetary Theory", which seems to be half witchcraft and half voodoo (as opposed to economics in the normal way a la Henry Hazlitt). I assure you, I'm not ignorant of economics.

The money for national government spending comes from three sources: taxes collected, bonds issued, or simple monetary inflation (i.e. printing money). The latter two have negative impacts on an economy, but on different timescales.

If you artificially throttle taxes collected, then you force the government to choose one of the other two. And as I said, that will cause the feds pain.

#economics #EconomicsInOneLesson #HenryHazlitt #MonetaryTheory

C.Nov 26, 2024

With the orange one's blathering about slapping #tariffs on #imports from #Canada, #Mexico, and #China, lots of people are pointing out (correctly!) that it's #USAnian #consumers that will pay the (literal) price of the tariffs. Manufacturers and importers pass their #costs along to the final buyer; there's no other way it can work.

The claimed "cost of living" MAGA voters are going to get a really nasty shock as these price increases work through the system, particularly the China one. Dear Leader has said he wants an eventual 60%, or even 100% tariff on everything from China.

To a first approximation, *everything* in Walmart except food is made in China. And much of the food comes from Canada and Mexico. Ditto for virtually every other low-price retailer.

How is that cost-of-living voter going to feel when the price of everything at Walmart goes up by 40, 50, 60% or more?

Either Cheeto Mussolini is going to get a very swift #economics lesson, or his billionaire backers are going to get him to back down on tariffs.

#consequences #UnintendedConsequences #EconomicsInOneLesson #HenryHazlitt #CheetoMussolini #OrangeOne #MadeInChina #USPol