CalicoJack
The Psy of Life

1. That’s NOT How Tariffs Work!
2. This is How Tariffs Work
   1. Trump’s Fundamental Misunderstanding is Psychosocracy
   2. Tariffs are a Regressive Tax
3. Tariffs as a Drag on the Economy
   1. Slowing Job Growth
   2. Tariffs: Transferring Middle Class Wealth to the One Percent
   3. Trump’s Tariffs: Same Republican Tax-Cut and Spend Destruction Song, Just a Different Verse
4. Image Attribution

I’m no expert in economics or government fiscal policy. I don’t even play one on TV. I’m just a casual economics observer trying to make sense of this mixed up, muddled up, shaken up world. So, what I’m offering today is my take on the effects of the Orange Caricature’s tariff policies on our society in the broadest strokes possible.

Here’s the thesis, Trump’s tariffs policy is a massive transfer of middle class wealth to the one percent.

Here’s the thesis, Trump’s tariffs policy is a massive transfer of middle class wealth to the one percent.

That’s NOT How Tariffs Work!

This is How Tariffs Work

Tariffs do indeed pay money into the US treasury. In that sense they can be broadly categorized as a tax. Contrary to the assurances of the Orange TACO Stain and his team, it is a tax paid by the US consumer. By now we all realize that Trump doesn’t understand how tariffs work — because he keeps saying that foreign companies and countries will be paying the tariffs or companies will “eat” the increased costs.

While the importer is responsible for paying the tariffs, they pass the cost on to the consumer, i.e. the people buying the product that was imported into the country. Since the country importing the tariffed goods is the US, it is the increased cost is passed on to the US consumer. The importers are not idiots and are driven by the profit motive responsible like all capitalists. And, like all capitalists, they give no fucks about anything other than maximizing their profits.

Trump’s Fundamental Misunderstanding is Psychosocracy

Trump’s fundamental misunderstanding of the effect his tariffs will have is a prime example of psychosocracy or rule by the psychotic. Trump is not dealing with reality when it comes to tariffs. He’s either lying or just plain stupid. Either way, his rhetoric is wildly divergent from reality.

Because the cost of the tariffs is borne by the consumer, they amount to a regressive tax. This is because lower-income households spend a disproportionate amount of their income on consumer goods than higher income households. Thus, they are paying more of their income — disposable or not — to cover the increasing costs of the tariffs.

Tariffs are a Regressive Tax

According to the lying woke Yale Budget Lab who hates Trump and MAGA because of our freedumbs:

• The average tariff on imported goods is 22.5%.
• Prices have increased by 2.5% or an average of $3,800.00 per US household per year.
• The LOWEST INCOME LEVELS are paying an extra $1,700.00. The people who can least afford it will be paying the most.

Tariffs as a Drag on the Economy

Slowing Job Growth

But, the economic impact on the lower income levels, meaning anyone outside of the highest income bracket, gets worse. Much worse. The revised new and improved Bureau of Labor Statistics newly politically de-weaponized and wokeless just released its jobs report for August. It showed two findings that were thoroughly vetted by its new chief, so you know they weren’t monkeyed with just to make Trump and his economy look bad like they were by the highly politicized woke DEI hire left over from the Biden admin.

• Job growth for August was a very anemic and disappointing 22,000.
• And, the job report for June was revived downward showing a DECLINE of 13,000 jobs, making it the first month to LOSE jobs since the Trump-made fiasco of the #COVID19 pandemic of 2020-2021.

You know these numbers are the BEST BLS monthly job reports numbers in the world. Lots of people are saying so. There are big strong men with tears in their eyes all over the world saying, “Sir! Sir! How did you get those numbers? No one in the history of monthly job reports has ever had such great numbers! We’ve never seen anything like it.”

Because the BLS is now dedicated to accurate data collection and analysis, we can be very confident that they are truthful, honest, and accurate, make Trump look good, and put him in the best light possible. Finally, some honesty and truth from a government economic agency. Finally.

Tariffs: Transferring Middle Class Wealth to the One Percent

Now, that the lucre is flowing into US coffers by the billions and trillions and, I’m sure, by the time the most proliferate liar in the history of the world is done telling it, quadrillions of dollars, what’s being done with that money?

We have trillions of dollars pouring into our coffers. I’m getting calls from people in government saying where did I get the $29 billion from? And I said, “Why don’t you try the tariff shelf?” And you know, we have, as an example, the European Nations, we made a great deal. They pay us literally trillions of dollars. Japan, so many. And you know what? They like us better. They respect us. They didn’t respect us. They were paying us nothing. Nothing.

Interview: Sean Hannity of Fox News Interviews Donald Trump in Alaska – August 15, 2025

We already are cutting trillions from the US budget, most notably Medicaid expenses, but also tens of thousands of federal employees and grant money. So, what is that money being spent on? Tax cuts for billionaires. It’s going to fund the insane tax cuts his BassAckwards Baneful Bill have enshrined in US law.

Trump’s Tariffs: Same Republican Tax-Cut and Spend Destruction Song, Just a Different Verse

Like Some Mo’Ron and Poppy Bush and W before him, he is going to destroy the US economy by handing the wealth of the nation to the one percent, but instead of crushing us just with national debt, he’s going to crush us with national and personal debt.

Consider these findings:

• Household debt hit a record high of $18.388 TRILLION with a T in 2025!
• That’s an average of household debt of $105,056 in 2024 or an increase of 13% since 2020.
• $1.209 TRILLION in credit card debt, which is enough to drown just about any government in.

People are using credit cards to keep up with increased costs, but that’s not a tenable long term solution. As Trump pushes for lower interest rates — not going to see lower rates on your credit cards, though — inflation will rise even faster.

What happens a long about Christmas when we’ve all maxed out our credit cards and prices continue rising because of greedflation and the magical “get out of jail free card” provided by the Trump tariffs? The American consumer spends less, which slows down the economy.

Quarter one of 2025 saw a contracting economy (a growth rate of -0.5%). However, quarter two rebounded to a relatively healthy 3.3%, but that was based on consumer spending as the initial shock and confusion of Trump’s first one hundred days in office was wearing off and all of his TACOness began to settle. Now, we’re have real tariffs to deal with and their effects are just now beginning to be felt. Don’t expect the economy to continue growing.

The Felonious Rapist Traitor’s second administration is just a continuation of all of the previous Republican administrations, but with more obvious grift, corruption, and authoritarianism. They are still transferring as much of the country’s wealth to the one percent as quickly as they can. This time they’re using tariffs and not the tried and untrue trickle down economics voodoo.

The rate at which the tariffs are taking money out of the economy signals that likely disaster is just ahead, especially if Trump successfully takes over the Fed and can get the interest rates he wants.

Image Attribution

This image was found on The Week’s 5 July Editorial Cartoons page using a Creative Commons Google Search.

____
https://thepsyoflifeblog.com/2025/09/06/tariffs-trickle-down/