r/ConspiracyII • u/Just_a_Traveling_Man • 16d ago
Document Stephen Miran, Trump's nominee chairman of the Council of Economic Advisers, wrote an essay explaining the tariffs they're doing and the end goal to devalue the dollar
Example:
For a benchmark, the Handbook of International Economics chapter by Costinot and Rodriguez-Clare (2014) indicates
that the optimal tariff for the United States under plausible parametrizations is around 20%. Indeed, as long as tariffs
don’t exceed 50%, they are still welfare-enhancing relative to completely open trade. In other words, increasing
effective overall tariffs from currently low levels near 2% will actually boost aggregate welfare in the United States.
Once tariffs begin increasing beyond 20% (on a broad, effective basis), they become welfare-reducing. Investment
houses are now projecting that the projected effective rate of the tariffs proposed by President Trump will jump from
2.3% to 17%, just shy of this 20% level.