Trump Tariffs Hit Trucking; Higher Prices To Result

But nothing compared to 2008, 2010 and 2014.

 

Anti-Trumpers can’t have it both ways, saying we’re going to have high inflation and deflation because of Trump. You can’t have both simultaneously.

 

You are correct - you can not have high inflation and deflation at the same time - both are bad - but deflation is the worst of the two (sans hyper inflation which is a different beast altogether).

From an economic perspective - high inflation comes about due to an economy growing to fast ( hyper inflation being something completely different). Deflation comes about due to a economy that is in decline.

Those that are trying to tie increasing inflation to a bad economy have no clue what they are talking about - and I think this is what you were referring to.

It is in large part a function of human Psychology. Take the housing market for example - when prices are rising- people rush to buy because if they wait the price will go higher. In deflation it is the reverse - people hold off purchases because the price will be lower tomorrow. This is why deflation can be very nasty - as people hold off purchases - this exacerbates the price movement down - which gives a greater incentive to hold off purchases. It can be a vicious cycle.

 

Trump's war against America is beginning to inflict its predicted damage. The US is in its direct path, and it can't escape by creative use of a remedial Sharpie.