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56 sats \ 1 reply \ @SimpleStacker 28 Jul \ on: The Economic Consequences of Tariffs: Nobody Knows (FT, Ruchir Sharma) econ
The counterbalance to TACO (Trump Always Chickens Out) is MAO (Media Always Overreacts)
You can make a lot of money trading on these two principles.
And, now to put on my economist hat, the aspect this article failed to mention is elasticity. It's well known that taxes of any kind, including tariffs, have a larger impact when demand or supply is more elastic, and it's also well known that things are relatively inelastic in the short run and more elastic in the long run. It might just be that the impact of the tariffs haven't had time to play out yet. To the extent that shipping contracts, warehouse capacities, etc, etc, all adjust with a lag, it's too early to declare one way or another
That's a good point. There are a bunch of different parties throughout the supply line who will have just had to eat various cost increases.
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