I hope I’m wrong, but I think at some point this is going to hit their constituents hard enough that they don’t have a choice.
The effects are going to reverberate across the economy HARD. Rising materials costs will send already barely affordable insurance premiums skyrocketing. Rising costs of pharmaceuticals and medical supplies and devices will skyrocket already barely affordable medical care.
I think very few businesses will be immune from second and third order effects. I read an article about a company that makes decorative tins for cookies and other snacks, and their costs are more than doubling. This is going to hit small baking businesses, maybe not incredibly hard, but it’s the kind of business that probably thought they were immune.
The article didn’t say how the decorative tin maker voted, but the tins had tacky American flag and eagle designs, so I think he was a leopard snack
My theory is that very little of this is priced into the stock market yet. It’s a complex analysis with no historical precedent that changes completely day to day and no one really knows what to do. I think we are at that cartoonland point where we’ve walked of the cliff but are hanging in midair because we haven’t realized it yet……..although I think a better analogy for some people is they walked off a cliff and are flapping their arms, and they haven’t yet realized they can’t fly because their cult leader told them they could.
And the pain that is coming for ordinary citizens is nothing like the pain of Covid inflation. That was relatively diffuse, affecting everyone but not really that destructive. That’s what his supporters are think is coming, and they are agreeing to it because the Biden inflation wasn’t really that hard on most of them, they just liked to bitch and moan about spending a few buck more on eggs because Biden sucks.
But what is coming is the kind of pain that’s going to destroy their businesses and life-savings, and it’s going to come on fast.
When it does hit the fan, they (Vichy Congress) may not have a choice but to act.
Even if I’m wrong and the world doesn’t crash as hard as I expect, or if Trump actually settles on something reasonable, the effects on business are still going to be devasting unless Congress acts.
Not knowing what anything is going to cost tomorrow or next week is paralyzing. You can plan for normal cost increases, but when anything and everything is subject to price fluctuations in triple digit percentages daily……it’s mind-boggling, I’m not sure how my business would’ve handled that, contract-wise “Here’s what I think it’s going to cost but it might be twice that” really doesn’t fly.
As long as Trump has these powers this is a confidence problem. There’s no permanence to any of his deals, they are just another episode of The Trump Show Season 2 and no one knows what fresh hell the next episode will hold.
I’m actually more pissed at the Republican Congress than Trump, because if they don’t know this, they should …….but they still think they can jump off a cliff and fly away by flapping their arms because Trump told them they could.