Blue Press Journal

Tag: economy

  • Trump should be cautious about making big changes in the economy

    Biden achieved an unprecedented milestone during his presidency, with American jobs growing for forty-eight consecutive months from January 2021 to December 2024. This remarkable accomplishment sets him apart as the only president since at least 1939 to achieve such sustained job growth.

    As Trump prepares to take office, there is a temptation to disrupt the progress made under Biden’s administration. Trump campaigned on the notion that the economy under Biden was in shambles, a claim that was proven false. Despite this, 68% of voters believed the economy was struggling. I guess you can fool some people all the time. 

    The truth is, the Biden administration had numerous successes to celebrate:
    – The unemployment rate started at 6.4% in January 2021 and remained at or below 4% for 30 of the 48 months.

    – Manufacturing jobs surpassed pre-pandemic levels before stabilizing.
    – Household net worth reached a record high of $169 trillion in the third quarter of 2024.
    – In 2023, the annual trade deficit with China was the lowest since 2009

    As Trump considers implementing his tariff agenda, he should proceed with caution. His previous promises to lower prices for essentials like eggs and gas fell short, and the consequences of hasty decisions could be detrimental. 

  • Empty promises and flashy rhetoric. They start on January 20th.

    Trump made a grandiose promise to lower grocery prices during his campaign, but surprise, surprise, it seems like it was all just a bunch of lies to win votes. I mean, who would have thought? It’s not like he was saying this when the economy was booming or anything. People just love to vote based on their feelings rather than facts. Reading is hard, apparently.

    “From the day I take the oath of office, we’ll rapidly drive prices down and make America affordable again,” Trump declared confidently to his supporters in North Carolina. “Prices will come down. You just watch. They’ll come down fast.” Spoiler alert: they didn’t and Trump now says they will not. .

    After winning the election, TIME magazine had the audacity to ask Trump if his presidency would be a failure if grocery prices didn’t decrease. “I don’t think so,” Trump responded, before awkwardly backtracking on his promise. “I’d like to bring them down. It’s hard to bring things down once they’re up. You know, it’s very hard.”

    Just days after the election, the Associated Press reported that many economists believed Trump’s plans, like tariffs on imported foods and deporting undocumented workers, could actually cause food prices to rise. Shocking, right? 

    Only about 2 in 10 Americans are confident that Trump will actually make progress on lowering grocery prices, housing costs, or healthcare expenses. But hey, who needs affordable groceries when you have a reality TV star as president, right?

    It’s disappointing to see how easily some people can be swayed by empty promises and flashy rhetoric. It’s a reminder of the importance of critical thinking and doing thorough research before putting our trust in any political figure. Hopefully, this serves as a lesson for future elections, and voters will be more discerning in their choices. As citizens, we have the power to hold our leaders accountable and demand transparency and honesty in their actions.

  • The Effects of Tariffs on Imported Goods…the Trump Promise

    Understanding Tariffs

    Tariffs come in two primary forms: specific tariffs, which are a fixed fee per unit of imported goods, and ad valorem tariffs, which are a percentage of the value of the imported goods. These taxes can be levied for various reasons including protecting domestic industries, generating government revenue, and responding to unfair trade practices.

    Direct Effects on Prices

    One of the most immediate consequences of tariffs is the increase in prices for imported goods. When a government imposes a tariff, it raises the cost of these goods for importers. These costs are usually passed on to consumers, resulting in higher retail prices. For example, if a country imposes a 25% tariff on imported steel, the price of products using that steel—like cars and appliances—will also rise. This leads to inflationary pressures in the economy, affecting not just goods that are directly subject to tariffs, but potentially many related products as well.

    Impact on Domestic Markets

    Tariffs are often implemented to protect domestic industries from foreign competition. In the short term, this can benefit local producers, allowing them to maintain or increase their market share as consumers seek alternatives to more expensive imported goods. However, this protection can also lead to complacency among domestic producers, reducing their incentive to innovate or improve efficiency. Over time, failing to compete with foreign manufacturers can hinder the growth of a country’s industry.

    Additionally, while some sectors may thrive due to tariffs, others may suffer. Industries that rely on imported raw materials may see their costs rise, leading to higher production costs and reduced competitiveness. This creates a complex dance of winners and losers in the domestic market.

    In summary, Trump’s proposed tariffs will increase costs for the very people he vowed to help by lowering prices.

    Read more in the below article:

    We’re Economists. Here’s What We Really Think Of Trump’s Plan To ‘Lower’ Grocery Prices.