Robert Reich Aug 25, 2024 (Posting Monday AM)
Friends,
Sorry to interrupt your Sunday but I think it useful in these final weeks before the election to give you the truth on important matters of public policy.
Today, Republican vice-presidential nominee JD Vance told NBC News that the tariffs Trump imposed during his term in office had not raised prices for Americans but had brought a significant number of jobs back to the United States.
Wrong on both counts.
In a careful analysis, researchers found the cost of Trump’s tariffs were “almost entirely borne by U.S. firms and consumers.”
That’s not surprising; tariffs function like taxes by raising the costs of imported goods. Trump’s proposal to raise tariffs on all imports as a means of raising revenue to offset a tax cut is obviously absurd.
Vance is also wrong about employment. Research clearly shows that the Trump tariffs did not bring jobs back to the United States.
Tariffs may be necessary for national security to protect critical industries such as semiconductors. But no one should be fooled into thinking they’re costless for consumers, or good for workers. The 1930 Smoot-Hawley tariff made the Great Depression far worse than it already was.
That Vance would make these claims — which have been so convincingly debunked — should cause all of us some concern. He seems as unreliable as the person who named him his running-mate.
https://robertreich.substack.com/p/vances-trumped-up-economics
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