Kasie Hunt: Kevin Hassett: Suppliers Bear The Tariff, Not US Consumer

"CNN's Kasie Hunt and White House National Economic Council Director Kevin Hassett discuss auto tariffs, the ongoing trade war and Amazon's tariff charge." 

Source:CNN talking to Donald Trump's economic propagandist Kevin Hassett.

From CNN

From The Hill:

"National Economic Council Director Kevin Hassett defended President Trump’s sweeping global tariffs that have stoked concerns about the United States economy.

During a Sunday interview on ABC’s “This Week,” Hassett said he doesn’t believe there will be a “big effect on the consumer in the U.S.,” noting that more than 50 countries are also “coming to the table” to negotiate... 

From The Hill

At risk of knowing the answer to my own question here: do you have to lose your brain, first, before you are even qualified to work for Donald Trump for anything? 15-20 years ago... even 10 years ago, Kevin Hassett was essentially a neoconservative supply sider on economic policy. He was someone who believed in open markets, tax cuts pay for themselves, deficits doesn't matter... this is what he believed back then. He was someone who also didn't like tariffs at all because he knows they're not just taxes, but middle class tax hikes. And he goes from that to saying: "Suppliers bear the tariff, not US consumer". 

And if Mr. Hassett said that under oath, he probably technically could avoid a perjury charge when he says that it's the suppliers bear the costs of the tariffs... But what he leaves out is that they only bear at first. Then they pass them down to their consumers. 

So when the U.S. Government passes tariffs on another country, (like the People's Republic of China) 2 things happen: 

their products become more expensive in America because it's not Chinese companies, or the PRC Government that's going to eat those costs. It will be the American consumer. 

And then 2nd, China starts sending fewer of their products to America, because now they're too expensive because of the tariffs for most Americans and they take their business somewhere else, which weakens the supply chain in America. 

What I'm giving you is really an economics 101 lesson that Mr. Hassett probably got in college 40 years ago. But he's either forgotten that (because to work for Donald Trump, you have to lose your brain, first) or, (and this is my guess) he's simply lying for his boss on national TV. 

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