.png)
Voters are especially concerned about inflation this election year. But what most don’t know is that Mr. Trump’s stated policies would make inflation much worse, leading to Trumpflation. In contrast, a recent analysis by Moody Analytics concludes that President Biden would do a superior job on the economy, including inflation, compared to Mr. Trump. “Biden’s policies are better for the economy. They lead to more growth and less inflation,” said Mark Zandi, Moody’s chief economist. Trump’s would lead to both higher inflation and a recession, the analysis concluded.
At fat-cats fundraisers Mr. Trump has bribed billionaires with big tax cuts for them if he gets reelected. Not only will this turbocharge economic inequality like his first tax cuts did. When combined with Trump’s proposed tariffs, it will create a big surge in inflation — Trumpflation. This will suck money out of the pockets of the average Joe and Jill.
In contrast, President Biden has worked hard to bring inflation down and wages up. Inflation has been reduced 6%, and real wages are higher today for the average worker than they were in the pre-pandemic Trump years, adding $1,400 to the yearly family budget.
Trump’s proposed tariffs would more than reverse all the gains made by President Biden. They include:
a 10% across-the-board tariffs on all imports, which, according to a former Trump official, would “get passed along through higher prices,” leading to inflation;
a 100% tariff on imported vehicles;
tariffs of 60% or more on all Chinese goods.
All of these, especially the 10% tariff on all imports, would create massive trade wars. As an economist at the conservative American Enterprise Institute said, “It would be a disaster for the U.S. economy. It would raise prices for consumers and be met with considerable retaliation from other nations, which would raise the costs facing U.S. businesses.”
Inflation hits the Middle Class, the Working Class, and the poor much harder than the rich. So Trumpflation exacerbates economic inequality. And Trump’s proposed additional tax cuts for the rich will add insult to injury. During his first term, Trump’s tax cuts for the rich and corporations gave a big boost to economic inequality, where the top 10% had almost 75% of the wealth while the bottom 50% had less than 2 percent. The poor received, on average, a meager $110 from the Trump tax cuts, while the uber-rich got over $220,000. In a second Trump term such economic inequality will be much worse if he gets his way.
We can’t let that happen. We must do what we can to stop Trumpflation by reelecting President Biden. As Moody Analytics shows, President Biden will continue to bring inflation down. And the President’s tax plan will continue his efforts to move us towards greater economic fairness.
Comments