Trade war could wipe out gains of GOP tax law, former top Trump economic adviser says
Source: The Washington Post
By Jeff Stein
June 14 at 10:16 AM
An escalating trade war could wipe out the benefits of the Republican tax law passed last fall, President Trump's former top economic adviser said Thursday.
Gary Cohn, who served as Trump's director of the National Economic Council, said that retaliatory tariffs between countries could drive up inflation and prompt American consumers to take on more debt, possibly pushing the country into another economic downturn.
If you end up with a tariff battle, you will end up with price inflation, and you could end up with consumer debt, Cohn, a former Goldman Sachs executive, said at a Washington Post event. Those are all historic ingredients for an economic slowdown
Asked if the trade battle could erase the gains to the American economy from the tax law, Cohn said: "Yes, it could."
Read more: https://www.washingtonpost.com/news/wonk/wp/2018/06/14/trade-war-could-wipe-out-gains-of-gop-tax-law-former-top-trump-economist-says/
Hugin
(33,164 posts)A trade war is only going to eat into the meat and bone...
bucolic_frolic
(43,188 posts)This is thinly disguised protectionism of Trump with looney supply-side theories going by another name
Wellstone ruled
(34,661 posts)has been tried four times in my lifetime so far. Less we forget the Nixon recession and the massive Interest rates of the 70's,less we forget the Reagan Recession,less we forget HW Bush recession,less we forget Georgie Bush's recession.
Gary Cohn is just doing Wall Streets water carrying. Looks like I see number five shortly.
TomCADem
(17,390 posts)Since Bernie has long been an opponent of NAFTA and TPP and a proponent of tariffs on steel imports?
Perhaps they are hedging against a likely recession as 2020 approaches when Bernie is the Democratic nominee.
murielm99
(30,745 posts)Why come here looking for a fight?
TomCADem
(17,390 posts)...offer mild opposition to Trump. Of course, they do not stop him. They just blame Bernie and Democrats for Trumps trade policy.
As for mentioning Bernie, trade was Bernies signature issue before Trump started stealing his rhetoric. It is sort of like how you cant discuss POWs and torture without discussing McCain.
FSogol
(45,488 posts)murielm99
(30,745 posts)BumRushDaShow
(129,109 posts)This is what the GOP excels at. Run up the debt, raid the treasury to dole out money to their benefactors, and then crash the economy. In comes Democrats who have to clean up the GOP mess which sometimes doubly hurts the consumers because of belt-tightening (but not by the purveyors or recipients of the raid)... After which the consumers get fed more GOP propaganda and blindly put the GOP back in power once the economy is back humming again.
Wash. Rinse. Repeat.
beachbum bob
(10,437 posts)FSogol
(45,488 posts)and multi-national corporations?
TomCADem
(17,390 posts)...and interest rates. That is what will put the breaks on the economy when people stop buying houses.
lagomorph777
(30,613 posts)But Turd's Trade Wars will hurt all of us.
LastLiberal in PalmSprings
(12,586 posts)1. Pass a tax plan for the rich but convince the middle class it's to their advantage.
2. Get into a tariff war for no reason at all, the effects of which are to not only wipe out whatever tax benefits the middle class got from #1 and convince them that it's Canada's fault.
3. Suck up to a murderous dictator, give him everything he wants without getting anything in return, wave an empty piece of paper in front of the cameras and ask, "Where's my Nobel Prize?"
Mission accomplished.
(Gawd, I miss Robin Williams.)