Most drivers of inflation lead to higher prices and eventually wages catch up. But tariff-induced inflation is different: Prices rise, but there's no reason to expect wages to catch up. They hurt your purchasing power in an enduring sense.
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Question: might these tariffs eventually act like Volker's rate hikes? Inflation spikes, peaks, then reverses. But then we're n a recession? Where does it end up?
Tariffs are essentially a selective sales tax. Fundamentally regressive and yeah, since the money ends up in the government's hands and the government isn't *paying out* any more in response, it's inflation that doesn't translate into higher wages.
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Stagflation is always painful.