xboxgreen said:
Not true at all, food will see small increases overall. Get rid of welfare, food stamps, section 8 housing, etc will make food prices and housing go down significantly. Those social programs jacked up the price of all products artificially. Not to mention we will have a bigger work force which will also drive down prices of products. |
On the other side of tarifs to raise competitor prices are farm subsidies to lower domestic prices.
https://usafacts.org/articles/federal-farm-subsidies-what-data-says/
9.3 billion a year spend on keeping farms afloat, 6% of farm income is 'social assistance'. Farms operate with zero margins, any increase in wages either comes from the consumer or from the tax payer in subsidies.
But it will mostly lead to people eating cheaper more unhealthy food, increasing healthcare costs.
If you want lower 'welfare' costs you should attack the private/corporate health sector that artificially keeps healthcare in the USA the most expensive in the world thanks to big pharma lobbying. (For example, in 2023, the US spent $13,432 per person, while the comparable country average was $7,393)
Social programs do not drive up prices, tax cuts do however. For example in The Netherlands housing prices soared when mortgages turned into tax deductible 'investments'. Since you could deduct the interest paid on a mortage from your income, originally intended to increase home ownership, house prices went up as people stopped baying back their mortage, instead banking on the tax deductions on the interest while leaving the mortage to be payed back when selling the house (for expected profit).
https://economy-finance.ec.europa.eu/document/download/97d9f604-8c96-4a33-a2a1-23dd97a1cb19_en?filename=eb072_en.pdf
Tax cuts increase inequality as they most benefit those already well off.
Social programs decrease inequality.
Inequality drives up prices and inflation.
It's not as simple as stated above but in general that is the effect we have been seeing in many countries.
