The title basically. If a significant number of consumers become savers/investors, does it help or hurt the economy?
If tariffs hike prices, and more people decide to save instead of spending, is it better or worse for the economy?
byu/IwantToDriveSoon inAskEconomics
Posted by IwantToDriveSoon
1 Comment
It’s not “if” tariffs hike prices. We know they do. For imported goods, domestic goods that are substitutes for the imports, and domestic goods NOT substitutes for imports.
https://www.pricinglab.org/tariff-tracker/
Unless there was a significant negative externality associated with imports, taxation of a “good” and changing consumption bundles is only a socially worsening outcome.