Warm Southern Breeze

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Federal Reserve Study: Trump Tariffs Hurt Economy & Employees

Posted by Warm Southern Breeze on Saturday, December 28, 2019

It’s official!

In their research work “Disentangling the Effects of the 2018-2019 Tariffs on a Globally Connected U.S. Manufacturing Sector,” Aaron Flaaen, a Senior Economist, and Justin Pierce, a Principal Economist at the Board of Governors of the Federal Reserve System, make their findings that Trump’s Tax Increase – aka “tariffs” – have actually harmed the Economy, and Employment.

“Since the beginning of 2018,
the United States has undertaken unprecedented tariff increases,
with one goal of these actions being
to boost the manufacturing sector.
In this paper, we estimate the effect of the tariffs
—including retaliatory tariffs by U.S.trading partners—
on manufacturing employment, output, and producer prices.”

“Higher tariffs are also associated with relative increases in producer prices via rising input costs.”
– Abstract; p.1

“We find that tariff increases enacted in 2018 are associated with relative reductions in manufacturing employment and relative increases in producer prices.”
– Section 1; p.3

“Since the end of 2018, however, manufacturing output has declined noticeably and manufacturing employment growth has stalled.”
– Section 2.1; p.5

“We find that the 2018 tariffs are associated with relative reductions in manufacturing employment and relative increases in producer prices.”
– Section 4; p.20

https://www.FederalReserve.gov/econres/feds/files/2019086pap.pdf

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