The current economic and political scenario of America is as fast evolving as a daily soap opera with Donald Trump as the recurring character where, at any minute, something might change, and people must be aware and ready for it. Amidst the Trump administration’s robust stance on various issues that have gone wrong in the last couple of weeks, inflation has been of major concern. Several people believe that the persistent issue of inflation played a big role in Joe Biden’s failure to secure a second term.
Reports suggest that inflation continued to rise in December for the third month in a row. Despite Trump’s return to the White House in January, the issue of inflation remains unsolved.
In a new interview, Donald Trump asserted that he had nothing to do with it. (inflation) “We inherited it,” Trump said, adding that it is absurd to blame him. As per the outlet Mediaite, Elon Musk and Trump both appeared in a joint interview with Sean Hannity that aired Tuesday night on Fox News.
The duo discussed their efforts to cut down on government spending, especially after Musk spent a quarter billion dollars to bring back Donald Trump.
Elon Musk has been appointed as the leader of the “Department of Government Efficiency,” a department solely responsible for cost-cutting. In addition, since taking charge, Elon Musk’s team has sacked many federal employees and frozen Congress-approved funding, leading to multiple lawsuits challenging the legality of these actions. As per Musk, “The overall goal is to try to get $1 trillion out of the deficit.” If the deficit is not brought under control, America will go bankrupt.
Speaking to host Hannity, Musk switched to layman’s language and explained that it is very important to understand that a country’s budget is equivalent to an individual’s budget. Just like how an individual can go bankrupt, so can a country.
As per Mediaite, he also mentioned the massive waste, fraud, and abuse that has been going on, which is leading to a $2 trillion a year deficit; that’s what the president was handed on Jan. 20.” Furthermore, Trump highlighted that the last administration spent $9 trillion like it was nothing.”
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Meanwhile, despite the high rise in price, Trump continues to support pro-tariff policies, claiming that they protect American industries and jobs. Trump has proposed even higher tariffs on Chinese goods, along with a universal baseline tariff on all imports, which might not be the best idea, according to numerous politicians.
In simple terms, tariffs are taxes on imported goods, which lead to higher prices for consumers and businesses and contribute to inflation. Moreover, this concept isn’t very economically positive when goods become more expensive; businesses often pass the cost onto customers, and high production costs for industries would automatically lead to a rise in prices.
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Moreover, when tariffs encourage local production of goods, ventures raise prices for a shorter period of time, which in turn can fuel inflation. Therefore, owing to Donald Trump’s adamant commitment to his tariff strategy, arguing that the long-term benefits outweigh the short-term economic pain, only time will tell the future of the situation. Stay tuned for further updates on this!
