Cheerleaders for Failure receiving more bad news with another monthly report on trade and inflation.
First, it's necessary to recount all of the failed predictions. Kinda reminds me of all the phony mmcc alarmism predictions that have failed.
“Trump’s trade war may soon hit consumers’ wallets and paychecks.”
Wharton Business School - University of Pennsylvania:
“Tariffs will surely lead to higher prices for imported goods and, to a lesser extent, prices for non-imported goods that use imported materials.”
“Tariffs are about to hit consumers, and it won’t be pretty.”
Roe Institute for Economic Policy Studies:
“Trade restrictions, by their nature, result in price increases for the goods in question. If the price of steel and aluminum goes up, manufacturers will be forced to pass those costs onto American consumers.”
So what is consistent with Cheerleaders for Failure, LIBs, Believers and Democrats when their predictions fail? They double down and move their predictions further into the future. Prices have not risen as predicted. Consumers have not been hammered at the checkout counters. Many have simply argued that the prices will increase over time. It's been over a damn year since the tariffs have been in effect. With each passing month, the Cheerleaders for Failure have finally begun to get more and more quiet.
In summary, after more than a year of tariffs, consumer prices have been only barely affected. Period.
June's consumer price index rose 0.1%. Kind reminds me of the mmcc alarmism over temperature increases. Year over year, consumer prices have only risen 1.6%, which is well below the Fed's warning benchmark of 2% annual inflation; and the economy is still chugging along and still creating jobs. Included in the Fed's analysis is something called the personal consumption expenditure index. This index is about 0.5% BELOW the consumer price index.
The facts TRUMP the alarmism of the so-called experts. Pun intended.
From the very beginning -- over a year ago -- Wilbur Ross was emphatic in stating that the dire predictions would be wrong. He's still correct today.
Some of the Cry Babies wail and gnash their teeth over auto sales. Car and truck prices are up only 0.6% on average from a year ago.
Another Cry Baby claimed that technology and appliances that are mainly manufactured abroad, would be the killer for consumers. Prices of televisions, computer and many major appliances have gone DOWN. In June, television prices dropped another 2.4% marking 11 straight months of declining prices. Year over year, televisions are 20% less expensive. Computers and related technology -- including phones -- are down 5.9% year over year. Phones alone are down 14%.
Washing machine prices went up initially, but are now down 4% year over year.
China imports have only had a 2.9% effect on prices, but the items have to be purchased by consumers for them to be affected. Prices on toys from China have dropped over 7%. Sports equipment is also less. Clothing prices are down.
None of these numbers indicate that prices will remain low forever, but after a year of tariffs, consumers are not feeling pinched by any increase in prices. It is entirely possible that the tariffs are being absorbed by foreign producers and middle men. Discounting products in price or foreign currencies declining against the dollar can cause this.