How many percentage of Americans are living on comfortable level of income?
Money Digest published this, said 6%. So 94% of Americans will be feeling the impact of tariff the hard way.
link:-
The majority of Americans are about to learn a very harsh lesson on how supply chains work. Shipping and trucking has effectively collapsed. The ripple effects will be devastating.
Honestly, this is a terrible thing. I get it, this is anti-consumption, but it is a clear sign the economy is slowing down and thats a bad thing for many of us.
No ships means no supplies coming into US ports from China and abroad. This means no replacement parts are being shipped. No raw supplies to build parts. No sales of grains for export, no cars or parts being imported, no medical supplies. As an example, if a thief steals your catalytic converter for your Prius, Toyota may not be able to replace it in the foreseeable future.
If there's no work on the docks, there are no jobs. No longshoreman jobs, no trucking jobs, no warehouse jobs, no railroad jobs. If companies can't get parts, they lay people off. This starts a ripple effect across the country. As the economy slows, the stock market takes a hit and your retirement funds can shrink.
This isn't just Temo and Shein finding themselves out of cheap things to sell in the US, it means significant parts of American life can be affected because even if a product is made in the USA, it could be assembled with parts made outside the USA. This means tens of thousands of small businesses could go bankrupt and box box retailer seeing revenue declining forcing them to do mass layoffs offs. This double whammy is going to lead to an increase in unemployment. This would certainly mean recession despite the propaganda from MAGA-land. This also means massive shortages that will lead to higher inflation. This means a return to stagflationary recession like we saw in the 70s. And if the tariffs continue and Trump next spring gets a Fed chief that is loose with monetary policy expect bond yields to spike even more and the value of the dollar crashing leading to worsening stagflation next year. If this scenario happens next summer could see massive instability and unrest in the US.
And with China’s tariffs on agriculture this is going devastating farmers. They lost a big market in China. They’ll likely get a big bail out by Trump but they’ll need it constantly every year. But that puts a damper on curbing debt and deficit spending. But farmers will still need to sell their goods. They will dump it in the American market but spike prices to make up for losses. And we haven’t talked about fertilizers needed to grow food that have been tariffed. In short if everything holds next year will see catastrophic consequences for this trade war. Like I keep saying America is going to look fundamentally different in 2028 than it does today. Maybe this is the harsh lesson American society needs to end hubris and arrogance.