The stock market plunged yesterday amid fears of a renewed and intense trade war with China. After months of the “calm before the storm,” United States equity markets dropped sharply on Tuesday as traders prepared for an escalation of the U.S.-China trade war complete with more tariffs (taxes on the American consumer).
Back in 2017, when they were making their supportive case for Trump’s tax cut and offshore tax repatriation holiday, the largest US technology companies promised they would go on hiring sprees and boost the economy. Just over a year after getting what they wanted, fund flow data shows that – contrary to Goldman’s recent calculations – these firms gave most of their huge tax savings to investors in the form of buybacks.
Tariffs are taxes, and like any regulation or tax, the increased cost will get passed onto the consumer. Although this is common sense, many still don’t believe that the trade war had an impact on their financial situation. However, just last year, Americans (not the Chinese) spent $1.4 billion per month on trade war taxes.
The national debt should be a huge concern for every single American, as the government is essentially stealing from people not yet born to pay for things now. As debt increases, so does volatility and interest rates; and at some point, the government will have to admit they cannot pay that money back.
Trump perpetuates one of Washington’s fondest myths – that the federal government is not coercive unless the president or some agency boss formally announces their plans to brutally punish some group without cause. This is notion is avidly supported and propagated by many of the nation’s pundits and political scientists as a way to keep people paying and obeying.
Residents and officials in the city of Los Angeles, California are horrified that their city has descended into a third world hellscape of poverty and disease. The typhus outbreak raging through the city is a flea-borne disease often reserved for socialist and poverty-stricken dystopias such as Venezuela.