Breitbart Business Digest: The San Francisco Fed’s Tariff Model Punches Itself in the Face

The Trump administration’s trade policy has been a hotly debated topic, with supporters and critics offering their own perspectives on the impact of tariffs. However, a recent study by a team of economists at the Federal Reserve Bank of San Francisco has taken the argument to a whole new level, making tariffs look like a complete disaster.

The study, titled “The Impact of Tariffs on the US Economy: Evidence from a Structural Model”, attempts to analyze the effects of tariffs on the US economy. But instead of providing a balanced and objective view, the study paints a doomsday scenario by assuming that every trading partner will retaliate with equal force and that the US will simply stand still and bear the brunt of it all.

This flawed approach has been rightly criticized by experts and has been dubbed as a self-inflicted wound by many. The study not only ignores the potential benefits of tariffs but also assumes that the US has no leverage in trade negotiations. This is far from the truth and only serves to mislead the public.

It is no secret that President Trump has taken a hard stance on trade deals, with a focus on protecting American workers and businesses. The implementation of tariffs on goods from China and other countries has been a key part of this strategy. While it is true that tariffs can lead to short-term disruptions, the long-term benefits can far outweigh the initial costs.

One of the major objectives of tariffs is to level the playing field for American companies, who have long been at a disadvantage due to unfair trade practices by other countries. By imposing tariffs, the US is sending a strong message that it will no longer tolerate such practices and is willing to fight back.

Moreover, tariffs can also act as a deterrent for other countries to engage in unfair trading practices. It forces them to rethink their strategies and come to the negotiating table, ultimately leading to fairer trade deals for all parties involved.

The San Francisco Fed’s study also fails to take into account the resilience of the American economy. Despite facing retaliatory tariffs, the US economy has continued to grow at a steady pace, with low unemployment and a booming stock market. This resilience is a testament to the strength and diversity of the American economy.

Furthermore, the study completely overlooks the fact that the US has a strong bargaining position in trade negotiations. With the largest consumer market in the world, other countries cannot afford to lose access to the US market. This gives the US the leverage to negotiate better trade deals that benefit its citizens and businesses.

In light of these facts, it is clear that the San Francisco Fed’s study is nothing more than an attempt to paint tariffs in a negative light. It completely disregards the potential benefits and exaggerates the negative impact, creating a distorted picture of the situation.

In fact, recent reports have shown that the US-China trade war has had a minimal impact on the US economy, with the overall impact on GDP being less than 0.2%. This is far from the disastrous scenario that the study portrays.

It is important to remember that tariffs are just one tool in a larger strategy to achieve fair and balanced trade. They are not the end goal, but rather a means to an end. The ultimate goal is to create a level playing field for American businesses and workers, and tariffs are helping to achieve that.

In conclusion, the San Francisco Fed’s study on the impact of tariffs is a clear example of biased and flawed analysis. It ignores the potential benefits of tariffs and exaggerates the negative impact, painting a distorted picture of the situation. It is important to approach such studies with caution and not let them sway our opinions on important policy decisions. The US is taking necessary steps to protect its interests in the global market, and the results of these efforts will be seen in the long run.