Can somebody explain to me in simple terms how super high China tariffs and high overall tariffs benefit rich people/Trump/Trump's backers. Never trumper here, so I'm not supporting him at all, and I do think tariffs will hurt our economy. I'm just not understanding who they benefit that Trump is getting push from.
I don't personally buy the just overall general sentiment that "they're deliberately trying to tank the economy because rich people benefit when the economy tanks" narrative, but maybe I'm naive. Maybe I also just don't understand the consequences of tariffs, but I just don't understand who wins with this.
ETA: I believe "they" don't care about tanking the economy, but is it really a feature not a bug?
Yes, you are naive. ;)
But first of all we must be aware that "they" are not a homungous group with all the same goals. But certain people who make their money with speculation,
love a good tank in economy.
I mean production may go down 5%, but stock prices? 20%? 30%?
Now leverage that and boy, you are in for a 100% profit year!
And then when the upcycle start, you buy cheap with that money you just made and enjoy the rebound.
That is one group.
Then there are people like Musk who absolutely
hate any regulation or resistance like from unions. Nothing like a good economic crisis with high unemployment rates to get rid of those things. It also helps to lower wage costs. More efficiency!
And then there are the "politicals". An economic downturn is always a time of political shifts and redistribution of power.
On the economic side of that, people who are too busy to find something to eat have no time or will protesting against a new factory, even if they know the factory will kill their children.
An economic rapture is the perfect time to grab what you can get. I do not say that there is a large group who sit's down in their bunkers and plans all that together. It's mostly individuals or small groups with their own interest who profit mightily from such events and such, if the opportunity arises, push in that direction. Without a big master plan. Invisible hand and so.
And if a few thousand plebs die, who cares? There are so many of them! Survival of the fittest, baby!
After all, it would be best if only Alpha Males would be in the government
https://www.independent.co.uk/news/world/americas/elon-musk-trump-harris-high-status-males-4chan-b2606617.html