Tariffs take money out of people’s pockets that goes to the government. This leaves people with less money to spend on goods and services, which leads to unemployment. This isn’t Ph.D. level economics. From The Winepress at thewinepress.substack.com:
“When you tax the intermediate goods, that’s going to manufacturers directly. That’s part of what we’re seeing,” said an analyst at Indeed.
Win McNamee—Getty Images
Government data is spotty and hard to come by these days because of the recent government shutdown, with the White House saying they will not release key economic numbers for the month of October, but there are still third-party sources publishing some statistics.
On Tuesday, a new ADP report found that the U.S. continues to hemorrhage jobs and new hiring continues to slide.
Per CNBC:
The U.S. labor market is showing further signs of weakening as the pace of layoffs has picked up over the past four weeks, payrolls processing firm ADP reported Tuesday.
Private companies lost an average of 13,500 jobs a week over the past four weeks, ADP said as part of a running update it has been providing. That’s an acceleration from the 2,500 jobs a week lost in the last update a week ago.
With the government shutdown still impacting data releases, alternative information like ADP’s has been filling in the blanks on the economic picture.
Government agencies such as the Bureaus of Labor Statistics and Economic Analysis have released revised schedules, but critical reports such as the monthly nonfarm payrolls count won’t come out until December.
This follows the continued monthly trend that The WinePress has documented multiple times this year, before the government shutdown was initiated.
There was NO Federal Reserve the time that tariffs worked?