Impact of Tariffs on U.S. Economy

SOURCE www.factcheck.org
President Trump's claim that the U.S. was its richest during the late 1800s and early 1900s due to tariffs is misleading. Economists point out that factors like immigration and increased labor productivity contributed more to economic growth in that era. Trump's suggestions that tariffs could replace federal income tax are mathematically impossible and could have negative economic consequences.

Key Points

  • Real GDP per capita today is significantly higher than it was in the late 1800s and early 1900s.
  • Economists argue that factors like immigration and increased labor productivity were more influential in economic growth during that era.
  • The idea that tariffs alone led to economic prosperity in the late 1800s and early 1900s is oversimplified.

Cons

  • President Trump's claim that tariffs were the primary reason for the U.S. being its richest during the late 1800s and early 1900s is misleading.
  • Economists argue that factors like immigration and increased labor productivity played a more significant role in economic growth during that period.
  • The suggestion that tariffs could replace federal income tax is considered mathematically impossible and could have negative economic consequences.
  • Higher tariffs could lead to job losses, higher inflation, larger federal deficits, and a recession.