Kudlow Admits the Obvious: Trump is Wrong

-edited

It's not easy to openly accuse your boss of being wrong, especially in politics. Trump's economic advisor just did.

Directly contradicting Trump, White House economic adviser Larry Kudlow Admits US Will Pay for China Tariffs.

  1. White House economic adviser Larry Kudlow on Sunday acknowledged that the Chinese do not directly pay tariffs on goods coming into the U.S., contradicting President Donald Trump’s claims that China will pay for tariffs imposed by the U.S.
  2. Kudlow said that “both sides will suffer on this,” but argued that China will suffer significant GDP losses as export markets are hit. The blow to U.S. GDP, on the other hand, won’t be substantial since the economy is “in terrific shape,” he said.

Kudlow is right about point one, wrong on point two.

The US economy is not in great shape unless you consider economic bubbles as a great shape.

Goldman Sachs Same Story

Goldman Sachs says the same thing: The cost of Trump’s tariffs has fallen ‘entirely’ on US businesses and households.

  • Goldman Sachs said the cost of tariffs imposed by President Donald Trump last year against Chinese goods has fallen “entirely” on American businesses and households, with a greater impact on consumer prices than previously expected.
  • The bank said in a note that the trade war’s impact on U.S. consumer prices is now higher than previously expected, partly because Chinese exporters have not lowered their prices to better compete in the US market
  • “One might have expected that Chinese exporters of tariff-affected goods would have to lower their prices somewhat to compete in the US market, sharing in the cost of the tariffs,” Goldman said.

Right Where We Want To Be

That set of Tweets is from Sunday. It's a repeat of economic idiocy from Friday and Saturday.

Not Economic News

Trump is either a blatant liar or an economic nitwit.

His Tweets prove it.

This is not economic news. It's political news repeated over and over so many times it's embarrassing.

Kudlow contradicted his boss. That's the real story.

Play the video in the Tweet.

Kudlow tried to duck pointed questions but got trapped. He simply could not stomach telling blatant lies unlike Treasury Secretary Steven Mnuchin.

For further discussion, please see

  1. Constructive Lies
  2. Dear President Trump: Stop the Damn Trade Lies

Mike "Mish" Shedlock

Comments (32)
No. 1-20
BigGringo
BigGringo

I am not a fan of Trump because of his dishonesty and immorality. That being said, the issue of the tariffs is interesting to me. Tarrifs, historically, would have been a democratic position. Of course, the idea being that if we make those imported goods more expensive, then companies here can afford to manufacture them and compete. But, now, Trump has done it, republicans support him, and democrats are against them.

I'm no fan of Kudlow either, putting him just slightly above Steven Moore in my list of partisan economic hacks. But, what he actually said in that interview is that, yes, he admitted that the tariffs are paid by American Consumers, and, that we have taken in alot of money by doing so (A tax hike on American citizens and businesses), but, that, over time, the outcome stated above (manufacturing here) would come to pass.

I don't actually think that will happen, as, at the end of the day, the salary of a Chinese factory worker is much less than an American factory worker. But, I enjoy watching these so called Republicans defending an issue that used to be an issue of the left. HaHa

Sechel
Sechel

Fairly obvious Kudlow has zero impact on Trump's economic policy. Trump hired him to be his TV economist promoting his agenda. No idea why Kudlow would sign onto such a mission.

Sechel
Sechel

They even teach this at Wharton's economic courses

Sechel
Sechel

if there were no cost to tariffs Trump would not be running to Congress and asking for fifteen billion dollars to buy unsold agricultural goods

KidHorn
KidHorn

The Chinese major trading tool isn't tariffing our goods. Instead they devalue their currency vs USD. If they do this even more to counter our tariffs, it will just strengthen USD and make us even less competitive on trade.

To fight China, instead of applying tariffs, we should be dumping USD in Forex.

Not that I'm in favor of any of these actions.