Economics Explained How Elections Damage the Economy
Oct 7, 2024
With 2024 shaping up to be a major election year, the podcast delves into how voting can introduce economic turmoil. It discusses the uncertainty that affects trade and tax policies, and how political shifts disrupt national economies. The impact of tariffs, particularly in the auto industry, is examined, revealing how protective measures can stifle innovation. Additionally, it highlights the manipulation of economic indicators by politicians and stresses the importance of informed voters for economic stability.
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Elections Create Economic Uncertainty
- Elections inherently create uncertainty affecting trade, taxes, and law enforcement.
- This uncertainty can paralyze business investment and slow economic growth globally.
The Double-Edged Sword of Tariffs
- Tariffs can protect local jobs but risk harming supply chains and innovation.
- They often raise prices and reduce international competitiveness over time.
US Auto Industry and Japanese Competition
- The US taxed Japanese cars in the 1970s to protect domestic automakers.
- This protection delayed innovation and allowed Japanese automakers to eventually dominate exports.