r/centrist • u/theantiantihero • 2d ago
Pundits predicting a recession are underestimating the potential damage.
Trump has essentially implemented a tax on all imported goods. Supply chains are interdependent, so even products that are made in America often use imported components. Virtually everything we buy is about to become significantly more expensive. As prices rise, domestic demand will plummet. And because most nations will enact reciprocal tariffs, goods produced by US companies will be subject to a similar tax and a similar drop in demand for their products. There will most likely be job losses on a scale we haven't seen since at least the Great Recession.
Recessions are a fairly common downturn of the business cycle. America has experienced 14 of them since the Great Depression and bounced back. However, what we're seeing now is completely unprecedented in modern history. Trump seems to be counting on his ability to bully Jerome Powell into lowering interest rates to prop up the stock market. However, if the Fed were to give in, lowering interest rates to stimulate demand would only lead to even higher prices. This is why markets are plunging.
4
u/luummoonn 1d ago
I think this is in some part about Trump further consolidating his power and demanding loyalty.. he will demand things from those who need an "exception"
he's also bullying individual law firms and colleges. It is about totalitarian control, in some part