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Inflation vs. Protectionism: Do Tariffs Actually Help or Hurt the U.S. Economy?

excerpt

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The debate over tariffs and protectionism has been a recurring theme in U.S. economic policy for over two centuries. In recent years, as inflationary pressures have resurfaced alongside global trade tensions, the question of whether tariffs protect domestic industries or contribute to broader economic malaise has become increasingly pertinent. This article explores the intricate relationship between tariffs, inflation, and overall economic performance in the United States. We delve into historical context, theoretical debates, empirical evidence, and case studies to offer a comprehensive analysis of the macroeconomic consequences of protectionist policies. Table of Contents Introduction Historical Context of Tariffs and Protectionism in the U.S. Theoretical Underpinnings: Tariffs, Inflation, and Economic Growth Mechanisms Linking Tariffs and Inflation Empirical Evidence and Case Studies Political Economy and the Role of Stakeholders Short-Term Gains vs. Long-Term Econom...

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