Poorer Americans shortly.

[Old Crank]

An economist friend sent me this article. If you need a quick summary of the damage to the US economy that could happen read this. Plane simple language explaining Trump's damaging tariffs. Following what is mainstream economic reasoning.


Edited to fit DU restrictions.

Here is a link that works, Courtesy of Bernardo de La Paz

https://umairhaque.substack.com/p/the-reality-of-trumps-economy-or


The Reality of Trump’s Economy, Or, Why Americans Are About to Get a Lot Poorer
umair haque
·
Aug 19, 2025
It’s criminal that I have to write this, but…I’ve rarely seen such levels of willful delusion. So let’s go through a few basics. About the economy, Trump, the “trade deals,” the tariffs, and what the effects will be. Because Americans, bombarded by propaganda, are badly deluded about it all.

Right about now, Trump’s effectively struck “trade deals” putting in place 15%+ tariffs on America’s largest trading partners. This is being spun as a good thing. I’ve heard this, amazingly enough, from people’s financial advisors, and if yours are telling you this, run. Or at least back away slowly.

Americans pay the tariffs. We should all know this by now. Tariffs aren’t revenues paid by, say Europe, Japan, or anyone else. They are owed to the US government, by importers, who usually just pass the costs on to consumers. So let me say it again, because this Delusion Number One: they pay the tariffs! Those dirty foreigners! No, dumbo, you pay the tariffs. But that’s just the beginning.

Let’s talk about tariffs as a “corporate tax,” the spin being that somehow, corporations will eat the cost of the tariffs. The tariff rate is 15%+. The average profit margin of the S&P 500 is about 12%. Does that give you an indication of why companies don’t eat tariffs? Because this is what we see historically: they’re passed down the line. Now you can see why.


Written by umair haque