Conversation

Wow, El Stupido (aka FFOTUS) has just dropped a trade bomb that probably amounts to the greatest tax increase (in the form of tariffs) on American citizens in the history of the USA.

This tax increase is highly regressive - the rich won't feel it because the tax/tariff is essentially a Federal sales tax. However, the middle class and people on even lower incomes here in the US will be clobbered. These people will react in a rational way by cutting back on their purchases - which is a road to recession or worse. It may also be inflationary because US vendors will increase their prices because of reduced foreign competition.