Summary
Fox News host Julie Banderas warned that President-elect Donald Trump’s proposed tariffs—25% on products from Mexico and Canada and 10% on those from China—could significantly raise costs for Americans, as many businesses rely on foreign goods.
While some companies are shifting to U.S.-based suppliers or stockpiling goods ahead of the tariffs, Banderas noted that buying American often results in higher prices.
She highlighted that the financial burden would likely fall on consumers, questioning, “Who’s going to pay for that? We are.”
Economists have also warned of inflation risks.
The average person likes stuff and wants their stuff now. The average person will buy shit on a credit card even though saving up to pay cash would make the cost much cheaper. Particularly disciplined people may put off purchases for a few months if they think the price will drop (maybe a few years for something really big like a house) but those folks are the exception rather than the rule. Are there real world examples of times when deflation triggered a mass consumer cash hoarding? Or is this something that only exists in economics books?
If you’re talking about investing and the behavior of companies, then maybe you’re right. Although I suspect it would also depend on interest rates and stock market performance.
The average person buys their stuff from companies and investors or businesses who get their supplies from said companies and investors. The people will not be able to buy things if those companies decide that they are more profitable sitting on pile of coins.