Economics has been called “the Dismal Science”. And the label will fit appropriately as the year wears on. Tariffs are a tax that every American will pay. Forget what you may have heard from Washington. It’s simple math. Most Fortune 500 companies have a single digit profit margin. The latest tariff news calculates out to a “tax” of nearly 19% on average. It is impossible for any retailer or manufacturer to absorb that cost increase without going bankrupt. Some may say they will absorb some of the tariff cost but, in the end, all tariff costs will be passed on to you, the consumer. KEEP IN MIND THAT THE GOVERNMENT GETS EVERY DOLLAR CHARGED THE IMPORTER WHEN THE PRODUCT ENTERS THE US. SO TRUMP’S TREASURY GROWS AT YOUR EXPENSE. Here’s where the rubber meets the road: Increased costs lead to less purchasing power. Less purchasing power means inventory of unsold goods piling up in warehouses. Excessive inventories lead to job lay-offs because the manufacturer won’t need to have three shifts or maybe won’t need to pay for a 5 day work week. Hence unemployment will soar. As the ranks of unemployment grow and prices escalate people will get desperate. Crime will rise as the unemployed fight for survival for themselves and their families. As this scenario unfolds American companies will continue to lay off workers and the downward spiral accelerates. We see depression by the end of 2025 creeping into the discussion. Now you know why they call it “The Dismal Science”. Unless the Trump Administration stops the destruction of our economy depression is just a matter of time. Sorry, folks, the truth hurts and we hope you won’t experience this economic calamity. The really sad part about this: Trump didn’t need to place tariffs at all. The economy in 2024 and early 2025 was headed in the right direction. This impending financial crisis is a Trump-made catastrophe that didn’t need to happen at all.
Last thought: When the Head of the Bureau of Labor Statistics was fired last week for being honest it signaled the inevitable is already starting. Job creation is almost zero and that shows the first stage of the cycle. Companies won’t add employees when they see the brewing storm. Watch the unqualified sycophant Trump installs at the BLS and–more importantly–watch your buying power dwindle.
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