Notes from James:
I’ve been seeing a ton of misinformation lately about tariffs and inflation, so I had to set the record straight. People assume tariffs drive prices up across the board, but that’s just not how economics works. Inflation happens when money is printed, not when certain goods have price adjustments due to trade policies.
I explain why the current tariffs aren’t a repeat of the Great Depression-era Smoot-Hawley Tariff, how Trump is using them more strategically, and what it all means for the economy. Also, a personal story: my wife’s Cybertruck got keyed in a grocery store parking lot—just for being a Tesla. I get into why people’s hatred for Elon Musk is getting out of control.
Let me know what you think—and if you learned something new, share this episode with a friend (or send it to an Econ professor who still doesn’t get it).
Episode Description:
James is fired up—and for good reason. People are screaming that tariffs cause inflation, pointing fingers at history like the Smoot-Hawley disaster, but James says, “Hold up—that’s a myth!”
Are tariffs really bad for the economy? Do they actually cause inflation? Or is this just another economic myth that people repeat without understanding the facts?
In this episode, I break down the truth about tariffs—what they really do, how they impact prices, and why the argument that tariffs automatically cause inflation is completely wrong. I also dive into Trump's new tariff policies, the history of U.S. tariffs (hint: they used to fund almost the entire government), and why modern tariffs might be more strategic than ever.
If you’ve ever heard that “tariffs are bad” and wanted to know if that’s actually true—or if you just want to understand how trade policies impact your daily life—this is the episode for you.
Timestamps:
00:00 Introduction: Tariffs and Inflation
00:47 Personal Anecdote: Vandalism and Cybertrucks
03:50 Understanding Tariffs and Inflation
05:07 Historical Context: Tariffs in the 1800s
05:54 Defining Inflation
07:16 Supply and Demand: Price vs. Inflation
09:35 Tariffs and Their Impact on Prices
14:11 Money Printing and Inflation
17:48 Strategic Use of Tariffs
24:12 Conclusion: Tariffs, Inflation, and Social Commentary
What You’ll Learn:
- Why tariffs don’t cause inflation—and what actually does (hint: the Fed’s magic wand).
- How the U.S. ran on tariffs for a century with zero inflation—history lesson incoming!
- The real deal with Trump’s 2025 tariffs on Mexico, Canada, and chips—strategy, not chaos.
- Why Smoot-Hawley was a depression flop, but today’s tariffs are a different beast.
- How supply and demand keep prices in check, even when tariffs hit.
- Bonus: James’ take on Cybertruck vandals and why he’s over the Elon Musk hate.
Quotes:
- “Tariffs don’t cause inflation—money printing does. Look at 2020-2022: 40% of all money ever, poof, created!”
- “If gas goes up, I ditch newspapers. Demand drops, prices adjust. Inflation? Still zero.”
- “Canada slaps 241% on our milk—we’re their biggest customer! Trump’s just evening the score.”
- “Some nut keyed my wife’s Cybertruck. Hating Elon doesn’t make you a hero—get a life.”
Resources Mentioned:
- Smoot-Hawley Tariff Act (1930) – The blanket tariff that tanked trade.
- Taiwan Semiconductor’s $100B U.S. move – Chips, national security, and no price hikes.
- Trump’s March 4, 2025, tariffs – Mexico,...
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The James Altucher Show