Rule by Tariff: When Trade Policy Meets Wishful Thinking Economics
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Rule by Tariff: When Trade Policy Meets Wishful Thinking Economics
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In this episode, TCS President Steve Ellis and Director of Research Josh Sewell tackle the Trump administration's tariff bonanza and explain why counting tariff chickens before they hatch is a recipe for fiscal disaster. They break down how tariffs work (spoiler: American companies pay them), why predicting tariff revenue is about as reliable as a chocolate teapot, and explore lawmakers' creative schemes to spend money that may never materialize. From Senator Josh Hawley's stimulus-style rebate checks to a proposed agricultural fund that essentially uses tariff money to compensate farmers for tariff damage (yes, really), the hosts reveal Washington's latest adventures in wishful thinking economics. Plus: why businesses hate uncertainty almost as much as they hate filling out tax forms, and how "rule by tariff" is making economic forecasters reach for the antacids.