As an analyst at Hudson Bay Capital, Stephen Miran authored the blueprint for the tariff strategy the Trump administration is now using:
Tariffs provide revenue, and if offset by currency adjustments, present minimal inflationary or otherwise adverse side effects, consistent with the experience in 2018-2019. While currency offset can inhibit adjustments to trade flows, it suggests that tariffs are ultimately financed by the tariffed nation, whose real purchasing power and wealth decline, and that the revenue raised improves burden sharing for reserve asset provision. Tariffs will likely be implemented in a manner deeply intertwined with national security concerns, and I discuss a variety of possible implementation schemes. I also discuss optimal tariff rates in the context of the rest of the U.S. taxation system.
(emphasis mine)
From
https://www.hudsonbaycapital.com/documents/FG/hudsonbay/research/638199_A_Users_Guide_to_Restructuring_the_Global_Trading_System.pdfMiran became the chair of the Council of Economic Advisors, appointed by Trump, in March 2025. He seems to be a conservative think tank creature too.
I have no standing in economics but I know a bit about it and I can also do math, and this document is word salad as far as I can tell. One of the considerations proposed for choosing a tariff rate is "Do the nation’s leaders grandstand against the United States in the international theater?" This is not economics, it's petty grievance disguised as policy.
#USPol #USEconomics #TrumpTariffs #TrumpRecession #TrumpCrash
