Donald Trump has been attacking President Biden on the economy. He says it is terrible and he would fix it. But he's lying. By any economic guideline, the economy is doing very well - unemployment is low (and has been for the last 23 months), the stock market is setting new record highs, job creation is strong (303,000 jobs last month), and GDP is good (better than any other developed nation), and inflation is falling.
It is inflation that has the public most worried. But Trump is proposing nothing that would reduce inflation. In fact, his two major proposals would increase inflation.
He has proposed putting a 10% tariff on imports. He would have you believe that foreign countries would pay the tariff, but that's not true. American consumers would pay the tariff in the form of higher prices on imported goods. And it would be hard for consumers to avoid paying Trump's new "tax". For instance, we import about 40% of vegetables and 60% of fruits from other countries. The tariff would drive up the price of groceries - the inflation most obviously felt by the public.
His other major proposal is to deport the millions of undocumented immigrants. This would not only cost a bundle, but it is likely to wreck the economy and increase inflation.
The nation is already at what is considered a full employment level by economists (since about 3% to 4% of the population is always quitting and changing jobs). And there are still thousands of jobs that need to be filled. They are mostly the low-paying, no benefits, and dangerous jobs that most U.S. citizens don't want. We need immigrants willing to fill those jobs.
And millions of immigrants are filling those kind of jobs already (paying billions in taxes, including Social Security payroll taxes). Deporting these workers would not only mean the government would have billions less in taxes (at all levels), but it would be disastrous for businesses already having trouble filling those jobs.
If those businesses can't find the workers to fill the massive amount of workers that would be lost, what will happen? They will produce less, and by producing less, prices will rise on the amount they are able to produce. The only option other than raising prices is to go out of business.
Trump's immigrant deportation proposal may sound good to the racists, xenophobes, and economically ignorant, but it would be bad for the economy. And both of his proposals would dramatically increase inflation - not decrease it!
The truth is that the economy is doing well, but it is also unfair to many poor and working class individuals. But Trump and the Republicans would not fix that. They cling to their failed trickle-down economic theory. They will not cure inflation or any other economic ill (like unfairness). They will only make things worse!
