Tag: economy
Donald Trump

Trump Won Vowing To 'Get Prices Down Fast' -- But Now 'It's Very Hard'

As a candidate, Donald Trump campaigned—and won—this year on the promise he would lower prices for Americans angry after the COVID pandemic’s inflation brought steep price increases, but now he’s backtracking, saying he’s not sure he will actually be able to fulfill those vows. Outrage at Trump, and the people who voted for him based on that pledge, was palpable on Thursday.

As recently as Sunday, MSNBC reports, Trump insisted, “We’re going to bring those prices way down.”

On Monday, Fox News reported: “Pointing to high grocery prices, Trump says, ‘I won an election based on that'”

But in his TIME magazine “Person of the Year” interview, Trump suggested he might not be able to lower prices as he promised to do. Appearing to remove himself from the equation, he declared: “It’s hard to bring things down once they’re up. You know, it’s very hard.”

Sam Stein of The Bulwark and MSNBC noted via social media, “’Prices will come down,’ Trump told voters during a speech last week laying out his vision for a return to the White House. ‘You just watch: They’ll come down, and they’ll come down fast, not only with insurance, with everything.'”

The President-elect told TIME he would “like to bring them down” when asked, “If the prices of groceries don’t come down, will your presidency be a failure?” but insisted if prices do not drop he doesn’t think that will make his second term a failure.

On the campaign trail Trump repeatedly promised he would lower prices and inflation, asHuffPostreported Thursday:

“’We will end inflation and make America affordable again, and we’re going to get the prices down, we have to get them down,’ Trump said at a rally in September. ‘It’s too much. Groceries, cars, everything. We’re going to get the prices down.'”

“’We will cut your taxes and inflation, slash your prices, raise your wages and bring thousands of factories back to America,’ Trump said at a Georgia rally in October, reciting a line he used in speeches at several other events.”

“Trump also specifically promised to get gas prices down: ‘I will cut your energy prices in half within 12 months.'”

Stein’s post earlier Thursday morning quoting Trump saying “You know, it’s very hard” to bring prices down set of an explosion of anger at the incoming occupant of the White House.

“Trump has already folded on prices. He has no plans to make life more affordable for the majority of Americans,” declared Lindsay Owens, executive director of the Groundwork Collaborative.

“All of you idiots who voted for Trump over food prices should feel pretty stupid,” journalist Roland Martin remarked in response.

Politico White House reporter Adam Cancryn responded to Stein: “Trump in Asheville in August: ‘From the day I take the oath of office, we will rapidly drive prices down, and make America affordable again’ ‘Prices will come down. You just watch. They’ll come down and they’ll come down fast. Not only with insurance, with everything.'”

The Washington Post’s Aaron Blake added: “Trump on Sept. 23: ‘Vote Trump, and your incomes will soar. Your net worth will skyrocket. Your energy costs and grocery prices will come tumbling down.'”

“Oh, Trump doesn’t have a plan to bring down costs for Americans? I’m shocked,” snarked Rep. Pramila Jayapal (D-WA).

Tom Bonier, a veteran Democratic political strategist noted, “He’s likely right, which is why the Biden record of increasing wages while slowing inflation has put our country on the right track, but of course no one could admit that until Trump won by running against inflation.”

Ron Fournier, a business executive and former journalist asked, “Wait. He promised to bring them down. Did he …

… lie?”

Reprinted with permission from Alternet.

Why Red States Will Rue Trump's Plan To Deport Undocumented Immigrants

Why Red States Will Rue Trump's Plan To Deport Undocumented Immigrants

Whether immigration played a significant role in Donald Trump’s presidential victory this November, he and his nascent administration have certainly read the election results as a mandate to deliver on his promises of mass deportations.

Yet talk is easier than action, and if carried out, the costs will be disproportionately borne by red states and areas.

Half of all undocumented immigrants in the country live in Florida, Texas, and California, according to data compiled by the American Immigration Council. But while California will put up every legal roadblock and refuse to assist federal authorities in targeting its own undocumented population, Texas and Florida may gleefully participate.

In Florida, 5% of the population is undocumented, or 1.1 million people, and that doesn’t include immigrants from Cuba, Nicaragua, Venezuela, and Haiti residing under temporary protected status, which will clearly be targeted by the Trump administration.

If emptied out of all undocumented immigrants, Florida would lose $1.8 billion in tax revenue, while Texas would lose nearly $5 billion, while those same immigrants are mostly ineligible for government benefits. That’s free money for the states.

Then there are the economic consequences—if you remove millions of low-wage workers, everything from agriculture, to construction, to industries like hospitality suddenly become dramatically more expensive. Florida’s 2023 anti-immigrant law, which cracked down on businesses hiring undocumented workers, could end up costing the state over $12 billion a year. Crops are rotting in the field, as farms lack the labor for harvest. Roofing companies, swamped with work after hurricane season, lack workers to patch up homes.

And what happens when demand is greater than supply? Trump is going to have a hard time fulfilling promises of lowering prices when his signature policies (deportation and tariffs) are both highly inflationary.

For industries like agriculture and construction, the cost of mass deportations is so high and obvious that it is downright shocking that they would vote as Republican as they did. Nationally, 64 percent of rural voters—heavily dependent on agriculture—voted for Trump.

The numbers are even more stark in counties classified as “farming dependent” by the United States Department of Agriculture. Of the 444 farming-dependent counties, Trump won 433 of them by an average of 78 perccent. The outliers? They were mostly Black-majority farming counties along the Mississippi River in Arkansas, Louisiana, and Mississippi.

So it’s kind of pathetic watching industry agricultural groups now beg Trump to spare their workers from the very thing they voted for. (These are the same people who are also freaked out about tariffs and Robert F. Kennedy Jr.)

There are electoral ramifications as well. Undocumented immigrants are counted by the census and are included for purposes of reapportionment, which impacts the Electoral College. Given that California and New York are expected to lose as many as 7-8 seats to Texas and Florida, a massive shift in the undocumented population would certainly affect these projections. If these projections pan out, a Democratic presidential nominee will need more than just the swing states of Michigan, Pennsylvania, and Wisconsin to win the White House (unlike today).

The combination of expulsions, self-deportations (as immigrants head back home on their own), and migratory shifts from unsafe red states to sanctuary blue states could very well dramatically reshape the reapportionment math. It will bear watching if Trump disproportionately targets blue states for this very reason, despite the aggressively anti-immigrant governors in Florida and Texas, happy to lend the feds a helpful hand.

Trump’s biggest challenge, of course, is reality. How do you deport 12 million undocumented workers? The United States Border Patrol has less than 20,000 agents as of 2022, and just under 17,000 of those actually patrolling the border.

Where are they going to get the manpower to raid Los Angeles, Houston, Omaha, and Peoria in any appreciable numbers? Some estimates place the cost of deportations at hundreds of billions of dollars per year.

Without state support, the feds will have limited options. “It’s not going to be successful, as long as we have sanctuary cities and states that refuse to allow local and state police departments to work with ICE,” former Trump U.S. Customs and Border Protection commissioner Mark Morgan told Stateline.

So what is the benefit of a plan that is horrifically expensive, drives prices up for everyone, disproportionately harms rural America and red states, and may actually give blue states a population boost ahead of the 2030 census?

There is a very real chance that Trump’s mass deportation effort accounts to little more than typical Trump bluster and some high-profile raids. But if Texas and Florida lean in hard to help out in their own states, self-deportation back to their homelands and internal migration to safer blue states may very well end up backfiring on Republicans with the only thing they truly care about—their ability to wield power.

Reprinted with permission from Daily Kos.

Retailers Estimate Consumer Cost Of Trump Tariffs In Tens Of Billions

Retailers Estimate Consumer Cost Of Trump Tariffs In Tens Of Billions

During her 2024 presidential campaign, Vice President Kamala Harris repeatedly warned that if Donald Trump won the election and followed through on his proposals for new tariffs, it would amount to a major "sales tax on the American people."

Having narrowly defeated Harris, President-elect Trump is following through on his tariffs proposal.

On Monday, November 25, Trump promised to enact new tariffs as soon as his second term begins. Trump is calling for new 25 percent tariffs on all goods imported into the United States from Mexico and Canada. And for Chinese goods, Trump favors tariffs of up to 60 percent.

The Hill's Sylvan Lane reports, "Trump's threat comes days after he announced he would nominate investor Scott Bessent as his Treasury secretary. His selection makes Bessent a key player in implementing Trump trade's agenda and attempting to keep markets calm amid the expected disruption. The former president rattled financial markets and key U.S. trading partners throughout his first term with his tariff agenda."

Pymnts.com analyzes the likely results of these new tariffs in an article published in late November, predicting that prices on consumer goods are going to soar in the U.S.

Drawing on data from the National Retail Federation (NRF), Pymnts warns that "Americans could lose between $46 billion and $78 billion in spending power every year if the proposed levies on imports to the U.S. go into effect."

According to NRF expert Jonathan Gold, "Retailers rely heavily on imported products and manufacturing components so that they can offer their customers a variety of products at affordable prices. A tariff is a tax paid by the U.S. importer, not a foreign country or the exporter. This tax ultimately comes out of consumers' pockets through higher prices."

Pymnts notes specific goods that are likely to soar in price.

Pymnts reports, "For example…. a $40 toaster oven could cost up to $12 more after the tariffs. A $50 pair of athletic shoes would climb to $59-$64 and a $2000 mattress and box spring set would wind up costing $2128-$2190."

Reprinted with permission from Alternet.

Why We Should Still Be Giving Thanks

Why We Should Still Be Giving Thanks

Thanksgiving is the most American of holidays. But there is something almost un-American about it. It is a day opposed to striving, to getting more. We stop adding up the numbers on the scorecard of life. We freeze in place and give thanks for whatever is there.

The Wall Street Journal once featured sob stories about failed dot-com entrepreneurs. People still in their twenties and thirties spoke painfully of their disappointments. They had planned to make many millions on internet startups, but the dot-com market crashed before they could pile up the first seven figures.

One 29-year-old had joined a new company that paid "only" $38,000 a year (about $64,000 in today's dollars). His business school classmates were averaging $120,000 at traditional firms. Others talked of working outrageously long hours. When their dot-com closed its doors, they had little personal life to fall back on.

Our culture does not encourage contentment with what we have. This is the land of the upgrade. One can always do better, be it with house or spouse. When money is the measurement, the competitive struggle can never end without acknowledging some kind of defeat. Everyone other than Elon Musk has someone who is ahead.

Messages in the media continually tweak Americans' innate sense of inadequacy. Our folk hero is the college dropout who sells his tech company for $2 billion by the age of 26. How is a middle-aged guy making $65,000 a year supposed to feel about that?

Some years back, an investment company ran an ad showing a young woman sitting pensively on a front porch. "Your grandfather did better than his father," it read. "Your father did better than his father. Are you prepared to carry on the tradition?"

Note the use of the respectable word "tradition" on what's really a call for intergenerational competition. It suggests that failure to amass more wealth than one's parents is a threat to the family's honor.

So what if the next generation isn't so rich as the previous one? The way most of our younger people live would be the envy of 95 percent of the earth's inhabitants.

Such thinking would have been wholly foreign to the Pilgrims celebrating the "first Thanksgiving." The Pilgrims traded all the comforts of England to worship as they chose. Their ship, the Mayflower, landed at what is now Plymouth, Massachusetts, on December 16, 1620. They held the "first Thanksgiving" the following autumn.

Mid-December is an awful time to set up shop in the New England wilderness. Disease immediately carried off more than half of the 102 colonists. They are buried on Coles Hill, right across the street from Plymouth Rock. Without the help of the Wampanoag Indians, the colony would have vanished altogether.

Things got better by 1625, prompting the colony's governor, William Bradford, to write that the Pilgrims "never felt the sweetness of the country till this year." But that hadn't stopped them from giving thanks four years earlier. The purpose was not to celebrate the good life but to celebrate their staying alive. The natives shared in the feast.

By the 1830s, America was already a bustling land of fortune building and material lust. Intellectuals of the day looked back nostalgically at the Puritan concern with unworldly matters. Ralph Waldo Emerson spoke of the Pilgrims' religious orientation as "an antidote to the spirit of commerce and of economy."

Thanksgiving is a throwback to that misty past. It requires a Zen-like acceptance of the present and what is. Gratitude is the order of the day.

This is a full-glass holiday. To be healthy, educated and living in America is to have one's cup running over. For that, let us give thanks.

Reprinted with permission from Creators.

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