site banner

Small-Scale Question Sunday for February 2, 2025

Do you have a dumb question that you're kind of embarrassed to ask in the main thread? Is there something you're just not sure about?

This is your opportunity to ask questions. No question too simple or too silly.

Culture war topics are accepted, and proposals for a better intro post are appreciated.

1
Jump in the discussion.

No email address required.

What do you think of the tariffs? Just kinda curious to get people’s general vibes.

I’m more excited than anything to see what happens as a U.S. citizen. I am not like in a super precarious place financially but I’d imagine it is scary for those who are.

I have yet to see a good justification for how they're supposed to be compatible with fighting inflation. Instead, they look like more of the same "make it so" Trump policymaking that I've been complaining about since 2016, and I expect to see a good dose of leopards eating faces. But maybe that's just me.

I know inflation is just what it’s called when prices get higher, but I don’t understand how all prices get higher just because of a tax. Intuitively there must be someone printing money, or else an increase in dollars spent here would mean fewer dollars spent somewhere else.

In fact I think this is why the Austrian school actually defines inflation as an increase in the money supply. Transfer payments, i.e. taxes, e.g. tariffs, are not inflation.

Right. Not just the Austrians, I think; my high school Econ class was very Keynesian, but I’m pretty sure it used the same definition.

Regardless:

Next, I will direct all members of my cabinet to marshal the vast powers at their disposal to defeat what was record inflation and rapidly bring down costs and prices.

The inflation crisis was caused by massive overspending and escalating energy prices, and that is why today I will also declare a national energy emergency. We will drill, baby, drill.

I think tariffs stand in opposition to this layman’s understanding of inflation because they suppress the supply of consumer goods. If there’s a mechanism by which they do boost supply, or if they actually help the Austrian money-supply definition, I want to hear about it!