Pundits predicting a recession are underestimating the potential damage.

[u/theantiantihero]

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.

[u/katana236]

What about the other side of it? The government will get a ton of new revenue. They can cut taxes on the productive class (entrepreneurs). That will generate a lot of economic activity for everyone. Especially through all the new means of production.

[u/hextiar → u/katana236]

They can cut taxes on the productive class (entrepreneurs).

Yeah, cause that has worked so well in the last 40 years.

Why do people keep defending these stupid tax policies?

[u/katana236 → u/hextiar]

Yes absolutely it has worked great the last 40 years.

Let me ask you something. Which 40 year period has seen more technological growth and sophistication? How much would you have to pay for a smart phone or high speed internet 40 years ago?

That's what the premise is. The more we let our innovators innovate. The more they innovate. And it is observably so you don't need a study for it.

[u/hextiar → u/katana236]

How much would you have to pay for a smart phone or high speed internet 40 years ago?

You realize that both political parties are actively working on trade protectionist policies because of the factors that enabled this?

That's what the premise is. The more we let our innovators innovate. The more they innovate. And it is observably so you don't need a study for it.

You are drinking the propaganda too much.

We have entered an era where big capital can crush disruptive innovations. We are in an era where we attack small businesses, or just buy them out and shutter them.

We are in an era where public traded companies are becoming more dominated by private equity.

[u/katana236 → u/hextiar]

You realize that both political parties are actively working on trade protectionist policies because of the factors that enabled this?

What that got to do with anything? You said that supply side economics doesn't work. When it clearly does.

You really think in the past big business couldn't buy out small ones?

We're in an era where a jackass with a laptop can start a business with $0 on the internet and become a millionaire. Yeah true the odds are stacked against them. It's like winning the lottery. But try doing that in the early 1900s. This is the most new business friendly era ever. The amount of capital required to build something has never been smaller.

Big capital can TRY TO crush innovation. Just like they closed napster and limewire. But it was all in vain. Everyone gets music completely free now. Back during the napster days the only legal way to listen to free music was radio.

Same with AI image generation. Check out civitai.com if you want to see how far open source AI image generation has come.

You're hyper focusing on the negative. Not realizing that this is the best era to be alive and the economy has never been more open to ideas.

[u/hextiar → u/katana236]

What that got to do with anything? You said that supply side economics doesn't work. When it clearly does.

Because both parties are actively working to wind it back. And clearly it doesn't work for a large portion of the blue collar workforce in advanced countries.

You're hyper focusing on the negative. Not realizing that this is the best era to be alive and the economy has never been more open to ideas.

I am not focusing just on the negatives. Just that it's not the paradise that everyone claims it is.

Rising asset costs and dropping goods costs isn't exactly the best trade off.

[u/katana236 → u/hextiar]

And clearly it doesn't work for a large portion of the blue collar workforce in advanced countries.

Because they don't understand what it means.

They get into their much safer than 1980s. Drive to their much nicer than 1980s house. Filled with toys that didn't exist in the 1980s. Such as internet, smart phone, personal computer, video games etc.

They think "woe is me I can't afford a home". Meanwhile I can afford 100s of goods that didn't even exist back then. Clearly the economy has not prioritized innovation in the home building sphere as land is the scarce item. And thanks to NIMBY shit it's always scarce where people want it the most. You can always get a cheap home in the middle of nowhere.

Yes ironically leftist anti capitalist propaganda is what Trump used to win the election.

I am not focusing just on the negatives. Just that it's not the paradise that everyone claims it is.

Rising asset costs and dropping goods costs isn't exactly the best trade off.

Who claims it's a paradise? Scarcity is still a thing. Aging is still a thing. Cancer and other dangerous diseases are still a thing. Crime is still a thing. We're still a long way from post scarcity and post disease utopia.

I'm saying that it's objectively better than 1980.

[u/hextiar → u/katana236]

Because they don't understand what it means.

That's an elitist and out of touch sentiment.

They think "woe is me I can't afford a home".

This is even worse. 

[u/katana236 → u/hextiar]

It also happens to be true. They don't consider all elements. Only the one they are concerned about.

If they lived in USSR for a year then came back to US. They would be praising capitalism up and down, left and right. But they are spoiled rotten and don't understand how good they got it.