""The tariffs have done significant damage to the economy," he wrote. "Since that day, job growth has come to a standstill, with only the non-traded healthcare industry adding meaningfully to payrolls.""
""Also, since that day, inflation has accelerated, with the consumer expenditure deflator increasing at a 3% year-over-year pace, up from 2.5% before the tariffs and well above the Federal Reserve's target of 2%.""
""Supply shocks are inflationary because they shift the aggregate supply curve upward. Consumers respond by spending less in real terms and/or saving less.""
Data shows that Liberation Day tariffs have negatively impacted the U.S. economy. Job growth has stalled, with only the healthcare sector seeing meaningful payroll increases. Inflation has risen, with the consumer expenditure deflator increasing to 3% year-over-year. Economists argue that supply shocks from tariffs are inflationary, leading to reduced real consumer spending and a declining saving rate. The overall economic health of U.S. consumers remains a concern, with many families effectively living in a recession despite tariff revenue.
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